The Bank of Canada is pushing for urgent stablecoin regulations as global adoption of these digital currencies surges. Stablecoins, cryptocurrencies tied to stable assets like the Canadian or U.S. dollar, are transforming payments with faster, cheaper transactions for cross-border transfers, e-commerce, and peer-to-peer exchanges. Their daily transaction volume is approximately US$2.7 billion, with annual usage approaching US$1 trillion, yet Canada lacks a cohesive regulatory framework.
Speaking at a recent conference in Ottawa, a senior Bank of Canada official highlighted the need for stablecoins to be as secure as bank deposits to ensure trust and drive innovation. Without clear rules, Canada risks lagging in the global digital payments race. Unlike the U.S., which passed the GENIUS Act in July 2025 to set standards for stablecoin issuers, Canada’s oversight is split between provincial securities regulators and federal bodies like FINTRAC, causing delays in modernizing payment systems.
The urgency stems from Canada’s outdated payment infrastructure, criticized for high fees and slow processing, dominated by major banks. While initiatives like the Real-Time Rail for instant transfers and open banking rules introduced in 2024 are in progress, they’re not enough to keep pace. Private sector moves, such as Shopify’s integration of stablecoins and a planned CAD-backed stablecoin launch in 2026, signal growing market demand.
Globally, unregulated stablecoins pose risks like money laundering, financial instability, and threats to monetary sovereignty by locking assets away from traditional lending, potentially skewing interest rates. The Bank for International Settlements has urged integrating stablecoins into regulated systems to balance innovation and security. Canada is now drafting a national stablecoin law, aiming to align with global standards and prevent economic fallout as competitors advance in the trillion-dollar digital economy.