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Bank of Canada Urges Stablecoin Regulatory Framework to Modernize Payments

Bank of Canada Urges Stablecoin Regulatory Framework to Modernize Payments

Deputy Governor Ron Morrow stressed stablecoins’ potential to cut Canada’s remittance fees and warned fragmented rules could leave the country trailing the U.S. and U.K.

Fact Check
Multiple credible and recent sources, including a direct publication from the Bank of Canada and news reports from The Globe and Mail and Cointelegraph, explicitly state that the Bank of Canada is urging for a stablecoin regulatory framework. The stated reason for this is to modernize the Canadian payment system.
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Summary

Deputy Governor Ron Morrow of the Bank of Canada emphasized that stablecoins are moving into mainstream cross-border and daily use, urging a unified federal regulatory framework. He cautioned that fragmented provincial regulation could leave Canada lagging behind the U.S. and U.K. Morrow highlighted that stablecoins have the potential to reduce cross-border remittance costs from 5–10% to under 1%.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, typically fiat currency or commodities.