Bull Bitcoin, a Canada-based Bitcoin exchange, has announced that it has developed Liquid CAD (L-CAD), a non-custodial, prepaid voucher denominated in Canadian dollars, issued on the Liquid network.
In a post on Medium, CEO Francis Pouliot highlights that this product is meant to accelerate the adoption of bitcoin by Canadians. Each L-CAD is purchased with Canadian dollars that then enter a closed-loop system designed to eventually convert into Bitcoin. Bull Bitcoin is not providing a way to redeem L-CAD back to fiat dollars, but acknowledges that they cannot prevent L-CAD from being traded on secondary markets.
Is L-CAD a Stablecoin?
No, L-CAD is more akin to a gift card that can be redeemed on Bull Bitcoin and affiliated merchants only. It is regulated by the province of Quebec as a prepaid card under the Consumer Protection Act and the Regulation respecting the application of the Consumer Protection Act Consumer Protection Act.
The purchase of Bitcoin using Liquid CAD is regulated in Canada by the Financial Transactions and Reports Analysis Centre of Canada under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (S.C. 2000, c. 17).
How Do You Get L-CAD?
Users can acquire L-CAD through the Bull Bitcoin exchange either by withdrawing from their bitcoin account balance or purchasing them on the platform. Additional liquidity providers are expected to also work with L-CAD.
What Problem Does This Solve?
Pouliot explains in his post that “the purpose of Liquid CAD is to facilitate the transfer fiat in the context of the purchase and sale of Bitcoin and providing innovative new services that help Bitcoin users hedge the value of Canadian dollars against Bitcoin in the context of their commercial transactions.”
More to the point: Once you’re using L-CAD, you’re going to find your way to bitcoin and they don’t want you to go back.
The post Bull Bitcoin Announces Canadian Dollar Payments on Liquid Through L-CAD appeared first on Bitcoin Magazine.