Our message is threefold.
Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Voices
How Stable is your Stablecoin?
Stablecorp | Jean Desgagne | Feb 3, 2022
There is no guessing game. A VCAD is a digital, secure, transferable bank deposit receipt facilitated by the blockchain.
The global stablecoin supply has exploded in 2021, tripling in supply since the start of the year with market cap surpassing USD 100 billion. What was once thought of as a bridge between the fiat and crypto world has increasingly become part of mainstream financial transactions with use cases ranging from access to crypto markets and a safe-haven asset to a means of payment for goods and services, accessing yield in digital markets, and remittances.
Stablecoins enjoy the benefits of blockchain-based assets without the volatility of traditional cryptocurrencies. The most popular stablecoins are ‘backed’ or ‘tethered’ to a fiat currency thus they achieve their ‘stability’ via fiat collateral held in reserve. These reserves are typically stored with a bank or some other third-party requiring management by a central authority, traditionally a private company. The whole principle behind the stability of this type of token is that you expect that the collateral held in reserve is equal to the stablecoin tokens that exist and that it is being held by a reliable entity.
See: Versabank to Launch VCAD, World’s First Bank-issued, Deposit-based Digital Currency
Users of stablecoins should ask themselves: What proof is there that the collateral reserves are actually there? Do they have the value that has been indicated to the market? In what jurisdiction are the reserves held and are they being held by a regulated entity? Does the entity issuing the stablecoin have the appropriate licenses and are they following appropriate regulations to operate?
Stablecoin-issuing companies seek to provide an element of trust and answers to these questions by providing regular attestations that the stablecoins are fully collateralized by a reserve, often done by a third-party auditor, as well as providing proof of licenses and registration to operate in the jurisdiction in question. But why not take this another step further? Rather than a stablecoin being ‘tethered’ or ‘backed’ to a fiat currency or bank deposit, why not create a stablecoin that is an actual bank deposit; a digital representation of a bank deposit?
Stablecorp and VersaBank have partnered together to do just that: create a token, VCAD, that differs from the traditional stablecoin model in that it is a digital representation of a deposit at an A-rated Canadian Schedule I Bank.
Schedule I banks are fully audited, well capitalized, and highly regulated by one of the world’s most respected financial regulators. In other words, you do not have to worry about the value of your stablecoin, whether it is “backed” in some offshore jurisdiction beyond Canadian (or any) regulation, or whether you can redeem it today for fiat.
See: A Visual Explanation of Algorithmic Stablecoins
There is no guessing game. A VCAD is a digital, secure, transferable bank deposit receipt facilitated by the blockchain. It has all the features of a cryptocurrency but addresses the two major shortcomings of the traditional cryptocurrency market – volatility and security. For all intents and purposes, it will function as the ‘stablest of stablecoins’ offering the highest level of stability and security amongst all digital currencies in the market today.
Author Bio:
Jean Desgagne is CEO of Canada Stablecorp. He is also a Corporate Director, Advisor, and Leader. He brings to his role deep C-suite and Board experience within large multinational financial institutions, exchanges & market infrastructures - in risk, operations, technology, finance and innovation. Current and past Board Member for regulated financial companies, government agencies, industry associations, universities and not-for-profit organizations. Advisor to several startups in the blockchain, Fintech, platform and data spaces.
This article is featured in NCFA's digital magazine, Fintech Confidential (Issue 4). Click to read the latest thought leadership, insights and trends about Fintech in Canada:
Checkout NCFA's digital magazine, Fintech Confidential (Issue 4) --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Rates are going up: “Emergency monetary measures to support the economy are no longer needed”
BoC | Tiff Macklem | Feb 2, 2022
Our message is threefold.
- The emergency monetary measures needed to support the economy through the pandemic are no longer required and they have ended.
- Interest rates will need to increase to control inflation. Canadians should expect a rising path for interest rates.
- While reopening our economy after repeated waves of the COVID-19 pandemic is complicated, Canadians can be confident that the Bank of Canada will control inflation. We are committed to bringing inflation back to target.
Let me take each of these in turn.
The Bank’s response to the pandemic has been forceful. Throughout, our actions have been guided by our mandate. We have been resolute and deliberate, communicating clearly with Canadians on our extraordinary measures to support the economy—and on the conditions for their exit. We said we would end emergency liquidity measures to support core funding markets when market functioning was restored, and we did. We said our quantitative easing (QE) program would continue until the recovery was well underway. We began tapering QE last spring and ended it in October.
Last week’s policy announcement marked the final step in exiting from emergency policies. We said exceptional forward guidance would continue until economic slack was absorbed. With the strength of the recovery through the second half of 2021, the Governing Council judged this condition has been met. As such, we have removed our commitment to hold our policy rate at its floor of 0.25%.
See: Bank of Canada holds on rates, warns of elevated inflation
Second, we want to clearly signal that we expect interest rates will need to increase. A lot of factors are contributing to the uncomfortably high inflation we are experiencing today, and many of them are global and reflect the unique circumstances of the pandemic. As the pandemic fades, conditions will normalize, and inflation will come down. However, with Canadian labour markets tightening and evidence of capacity pressures increasing, the Governing Council expects higher interest rates will be needed to bring inflation back to the 2% target.
Finally, Canadians can be assured that the Bank of Canada will control inflation. Prices for many goods and services are rising quickly, and this is making it harder for Canadians to make ends meet—particularly those with low incomes. Prices for food, gasoline and housing have all risen faster than usual. We expect inflation will remain high through the first half of 2022 and then move lower. There is some uncertainty about how quickly inflation will come down because we’ve never experienced a pandemic like this before. But Canadians can be assured that we will use our monetary policy tools to control inflation.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Innovation 360 Webcast: Driving financial inclusion in the U.S.
Fast Company | Innovation 360 Webcast | Jan 20, 2022
Living paycheck to paycheck is one of the biggest sources of economic stress for Americans today—and these anxieties weigh on mental and physical health too. Two-thirds of the U.S. population struggles with one or more aspects of their finances, including spending, saving, borrowing, and planning.
See: So what is financial exclusion in the era of Open Finance?
These individuals have massive unmet needs because traditional banking just doesn’t work for them. Fintech innovations, such as a new offering to be introduced at this event by H&R Block, are changing the landscape and creating financial inclusivity for those who need it most.
Watch the 'on demand' webcast --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Hester Peirce: Dissenting Statement on Proposal to Amend Regulation ATS (and limited comment period)
SEC | Hester Peirce | Jan 26, 2022
Thank you, Chair Gensler.
Events in the U.S. Treasury market (as well as the related repo market) over the past several years strongly suggest that the market for government securities suffers from inadequate levels of intermediation, liquidity, and transparency that in times of stress can dramatically decrease its ability to function properly and significantly increase risks to market participants. Commentators have suggested a number of possible reforms, and, although I am skeptical of some of these suggestions, I agree that the Commission should be considering carefully how it might use its authority to make changes that could relieve some of these pressures and help ensure that the market continues to perform its vital functions in the U.S. and global economy.
See: Active trading system list (data)
Careful consideration of fundamental issues of market structure is particularly important in the government securities market. It performs a central role in fiscal and monetary policy, as well as in our financial markets more broadly. The market is enormous, with over $22 trillion in U.S. Treasuries outstanding as of December 2021 and with over $600 billion in average daily trading volume. Any efforts to reform this market must take into account the potentially cataclysmic risks of inadvertently making things worse through sloppy or rushed rulemaking that introduces uncertainty for market participants or that deprives the public and the Commission of the opportunity to devote careful attention to thinking through the full implications of the proposed rules.
The proposal we are considering today is certainly not sloppy, but at the same time it is too wide-ranging and, given its length, too unwieldy to facilitate careful consideration. The document weighs in at a hefty 650 pages, contains over 220 separate comment requests (with many requests containing multiple questions), and addresses about a dozen significant issues, several of which affect trading venues of all types (including currently unregulated communication protocol systems). And the release goes well beyond government securities, or even fixed-income securities; key parts of the proposal affect trading venues that make any type of security available for trading.
Notwithstanding the literal and figurative bulk of this release, the Commission has determined that it is appropriate to provide the public with 30 days to read, understand, consider, consult, identify, model, assess, and discuss these rules and how they are likely to affect trading venues for every type of security that is traded in our markets. It would have been an irresponsible abdication of our role as the primary overseer of the U.S. capital markets to limit the public to a 30-day comment period on fundamental changes to the $22 trillion Treasury market; it is unconscionably reckless to do so for a proposal the effects of which will reverberate through all of the markets that we regulate, in ways that we cannot foresee.
See: Gensler is short-changing public comments
I cannot comprehend why we insist on blindfolding ourselves, rather than embracing the notice-and-comment process that has been so valuable in unearthing issues for our consideration. Our self-imposed unrealistic time constraint will prevent us from thinking seriously about the possible effects—intended and otherwise—of our rules by refusing to give the public sufficient time to provide us with informed comment.
We face no emergency in these markets that compels us to limit comments to 30 days; indeed, the Commission’s precipitous rush to plow through the comment period—almost as if it were a mere formality in our process—presents a greater immediate risk to the market than any of the issues that have led to this recommendation.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Gensler Speech Addresses Dynamic Regulation And Market Modernization
Cadwalader | Steven D. Lofchie | Jan 24, 2022
SEC Chair Gary Gensler urged regulators to update policy and monitor economic changes as part of a dynamic approach to regulation.
In prepared remarks before the Exchequer Club of Washington, D.C., Mr. Gensler highlighted two principles important to dynamic regulation: efficiency in capital markets and rules modernization.
On capital markets efficiency, Mr. Gensler noted the SEC's role in promoting fair markets by lowering the costs of financial intermediation. He encouraged greater competition and transparency as key pillars of efficiency, and directed SEC staff to foster competition and transparency throughout the financial sector. Mr. Gensler hoped this focus on transparency and competition would help both issuers and investors.
See: Gensler’s Updated Regulatory Agenda Critized by SEC Commissioners Peirce and Roisman (Exempt Securities)
With regard to modernization, Mr. Gensler described the SEC's history of adapting to emergent technologies and emphasized the need for more dynamic regulation. While acknowledging cryptocurrency as one area of technological advancement, Mr. Gensler focused on artificial intelligence and predictive data analytics as potentially revolutionary developments for the SEC to watch closely in the coming decade. He also pointed to non-technological developments, such as special-purpose acquisition companies and direct listings, as important areas for the SEC's consideration.
Mr. Gensler addressed public speculation on the timeline of new SEC rules publication by focusing on flexibility and "getting proposals right" rather than trying to prioritize any one area over another.
Continue to the full article --> here
View the full Gensler speech --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Your Business Needs Insurance
Foley | Andre Thiollier Louis Lehot | Jan 20, 2022
Many startups perceive insurance as a luxury, shelving it until they are further along in the company's lifecycle. However, any business serious about sustainable growth should not postpone this decision.
There is always a risk is involved in the process of starting and growing a company. Having adequate insurance is key to the success of your business and an issue every business owner needs to consider. Business insurance for startups provides valuable protection against the unexpected. Without coverage, threats like theft, fire, data breaches, or lawsuits could disrupt or damage your business.
See: Current cyber insurance model is broken and ripe for data-driven change
Once you understand how insurance is vital to your business, you will be better positioned to determine how much of it you need. Business owners must weigh the cost of insuring against various risks and the economic impact of an uninsured loss.
The Law Requires it
The Law requires businesses with employees to have certain types of insurance: Unemployment, workers' compensation, and disability are a few.
Failure to carry required coverage could result in fines, penalties, and "cease and desist" orders.
You Could Get Sued
If a liability claim or a lawsuit is filed against you and your business is without insurance, there could be serious and very costly implications. Public Liability Insurance protects your business against claims resulting from bodily injury or property damage to third-parties. Even winning could cause you to go out of business due to the cost of legal defense. Liability insurance allows you to concentrate on what you do best, running a profitable business.
Insurance Keeps You Up and Running
What happens if your business is affected by an earthquake or flood? P&C insurance covers loss of property, equipment, etc., income lost during a business closure. Business Owners Insurance (BOP) can play a critical role and help a company survive protecting against income loss. BOP also compensates for everyday operating expenses you may have otherwise incurred during that time. Some companies choose to insure lost income and include protection to pay employees for up to 12 months.
Required in Contracts
Some variables come into play when it comes to insurance and contracts: If you lease or rent, the landlord's policy may not cover you, and you may need to carry insurance. The loan agreement likely contains an insurance requirement if you borrow money to finance buildings, equipment, or operations. Client contracts could specify that you carry insurance.
See: Synthetic Media and Deepfakes: An insurance industry threat
Common types of insurance businesses should consider:
Workers’ Compensation Board (WCB)
Your business is growing. How do you know if it is time to protect it with workers' compensation insurance? Most business operations will be required to have workers' compensation coverage. This covers workers' medical and wage-loss costs if an employee is injured or contracts an occupational disease while on the job.
Technology Errors & Omissions Insurance: A startup providing professional services based on professional expertise should consider E&O insurance which protects against claims that allege damages arising from technology services you have provided. Your customers and partners may even require it.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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7 high-profile athletes taking the high-upside risk of crypto pay
Markets Insider | Matthew Fox | Jan 31, 2022
As bitcoin soared to record highs, more and more professional athletes said they would receive some or all of their salaries and endorsement deals in crypto.
Most of the commitments were made in 2021 when the total cryptocurrency market capitalization briefly touched $3 trillion and was consistently rising in value.
Odell Beckahm Jr. said in November he would take his $750,000 salary in bitcoin, while earlier this month two players on the NBA's Golden State Warriors said part of their salary would be paid in bitcoin.
See: CEBL Becomes The First Pro Sports League In North America To Offer Players Pay In Bitcoin Through Bitbuy
And it's not only athletes taking part of their salaries in bitcoin. Miami and New York City Mayors Francis Suarez and Eric Adams have received part of their salary in the cryptocurrency in a bid to demonstrate their cities' openness to the fast-growing industry.
Bitcoin has fallen from its mid-November high of about $69,000 to a low of about $35,000 this week, meaning some athletes have essentially taken a 50% pay cut for the same amount of work, assuming they didn't immediately sell their bitcoin for traditional US dollars upon receipt.
Complicating bitcoin salaries even further is the tax implications, as you are taxed on the value of bitcoin when you receive it, not on what the value fluctuates too come tax season. That means if bitcoin falls far enough and stays there, some athletes' tax bill may be more than the residual leftover value of their cryptocurrency.
Still, the potential remains for bitcoin to recover its losses and continue its long term uptrend, which would make the athletes decision to get paid in bitcoin look a lot smarter than it might today.
See: Miami mayor says the city is moving toward paying public employees in bitcoin
These are seven professional athletes that have taken the risk on crypto and have some or all of their salary or endorsement deals being paid in crypto.
- Klay Thompson
- Andre Iguodala
- Odell Beckham Jr.
- Shohei Ohtani
- Aaron Rodgers
- Cade Cunningham
- Trevor Lawrence
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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