pegged crypto tokens in Canada

 Lately with FTX and everything I got thinking about crpyto a bit more.

One subject of interest was pegged coins. Where some crpyto object value is kept in sync with some other currency such as the US dollar (USD). With Canada and pegged tokens there was an interesting tweet

Canada’s original pegged token #Bitcoin pic.twitter.com/LJZVJkIdTO

— argc (@tookalito) January 31, 2023

ah yes Canadian Tire money. The original pegged token. A $1 of Canadian Tire money earned in 1990 is still worth $1 today toward merchandise purchased at Canadian Tire.

I remember back when there were newspapers that people read. There was something of a market in Canadian tire money. Around 75 cents on the dollar as I recall. So someone would post a classified ad offering to sell or buy $100 of Canadian Tire money for $75.

How does this relate to crypto today. I wasn't sure what the point was of pegged tokens in crypto. After all if I wanted to own USD I can just get USD at any bank. Why use a crypto representation of USD. 

Then it occurred to me that the tokens can act as a kind of bridge between conventional real world money and the new digital crypto currencies. So you can "convert" your crypto coins into or out of conventional money without necessarily selling them and having to "leave" crypto. There becomes a path where I can keep some of my money in crypto, in a way that holds its value relative to the real reference currency, the USD say. avoiding the volatility of Bitcoin

Plus with the stable pegged token it gives a way to value other crypto coins or assets such as Bitcoin, dogecoin, NFT, etc. against a digital reference currency with predictable value (at least in terms of its value in USD). thinking about it a bit more, it's almost a medium of exchange say to sell litecoin, and buy bitcoin for example.

This post has run a bit longer than I expected. I was going to get into CanaCoin and CanaGold but that will now be in later posts in this series.