VersaBank Announces Plans For Digital Currency

VersaBank, which works in B2B digital banking and cybersecurity, has plans to launch a new encryption-based digital currency, according to a press release.

The currency will be represented one-to-one with the Canadian dollar and will be known as VCAD, the release stated. It will be the first digital currency to represent a fiat currency, alongside being the first one to be issued and backed by deposits of a North American bank.

VersaBank will be partnering with numerous organizations to launch VCAD, including Stablecorp, Canada crypto manager 3iQ, and Mavennet, a Canadian leader in blockchain development, according to the release.

VCAD is based on VersaBank’s proprietary banking software and digital currency issuance process will be managed in a safe manner with VersaVault, the release stated.

The way VCAD will work is through being issued by VersaBank to financial intermediary partners in exchange for Canadian dollar deposits with “smart contracts,” which are more highly encrypted versions of VersaBank’s existing digital deposit contracts, according to the release.

From there, VersaBank’s partners will issue the VCAD directly to individuals and businesses, which will be able to use them for commerce and redeem them for Canadian dollars at any time, the release stated.

David Taylor, president of both VersaBank and its cybersecurity subsidiary, DRT Cyber, said in the release that digital currencies “are the natural evolution of the world’s payment systems, and the launch of VCAD is a natural extension of our digital banking operations as we once again leverage our in-house technology to lead the banking industry.”

“As North America’s first bank-issued ‘stablecoin,’ VCAD offers consumers and businesses the ability to adopt and leverage the benefits of digital currency and blockchain-based assets without the volatility of traditional currencies, alongside the security of a value-backed asset that the cryptocurrency world has long demanded,” he said, according to the release. “Consumers and businesses purchasing products and services with VCAD will finally know the precise value of their digital currency when executing these transactions.”

Central bank digital currencies (CDBCs) have been much talked about as of late, with a survey showing 86 percent of the 65 central banks have said they’re at least in the early stages of developing a digital currency. The goal is to innovate to fill the spaces where cash is used less and people rely more on technology.