At the core of the Bank of Canada position is the requirement that stablecoins be pegged one to one with a fiat currency issued by a central bank. Macklem emphasized that issuers must back these tokens with high quality liquid assets that can be quickly converted into cash. These assets typically include short term government securities such as Treasury bills and sovereign bonds.
The guidance aligns with details outlined in Canada’s 2025 federal budget report, published in early November. The report states that stablecoin issuers will be required to maintain sufficient reserves at all times, establish clear redemption policies, and adopt comprehensive risk management frameworks. These measures include safeguards to protect personal and financial data, reflecting growing concerns about privacy and operational risks in digital finance.
Canada’s population of more than 40 million has increasingly embraced digital payments, and policymakers see stablecoins as a potential tool to make transactions faster, cheaper, and more efficient. However, officials remain firm that innovation must not come at the expense of monetary integrity or consumer trust.
Macklem said the objective is to allow Canadians to benefit from stablecoin technology while ensuring its use remains safe and predictable. Coinbase Canada CEO Lucas Matheson echoed this view in comments to CBC last month, stating that the proposed rules could fundamentally reshape how Canadians interact with money and the internet.
Stablecoin rules align with global regulatory shift
Momentum around stablecoin regulation in Canada increased after the United States passed the GENIUS Act in mid July, a law widely viewed as one of the most comprehensive stablecoin frameworks to date. Other major financial centers, including the United Kingdom and Hong Kong, have also advanced stablecoin regulations in recent months, signaling a coordinated global shift toward clearer oversight.
The stablecoin market currently stands at about $313.6 billion. According to estimates from the US Treasury released in April, the market could grow to $2 trillion by 2028, underscoring why central banks and regulators are moving quickly to define standards.
Alongside stablecoin regulation, Canada is building complementary financial infrastructure. The country is developing a Real Time Rail payments system designed to enable instant settlements between consumers and businesses. An open banking framework is also underway, allowing Canadians to move between banks more easily and securely.
Notably, the Bank of Canada stepped back from plans to issue a central bank digital currency in September 2024. Macklem said at the time that there was no compelling case to proceed, reinforcing the view that well regulated private stablecoins could play a role alongside traditional banking rather than replacing it.
As Canada finalizes its approach, the message from the Bank of Canada is consistent: stablecoins may be part of the future financial system, but only if they meet strict standards that ensure they function as sound and dependable money.
Read Also: Spot Bitcoin ETFs See $358 Million Outflow as Bitcoin Holds Ground Despite Drawdown
