Canada’s Budget 2025 outlines legislation granting the Bank of Canada authority over fiat-backed stablecoins, aligning with global regulatory trends to enhance financial stability and consumer protections.
Canada’s Budget 2025 commits to regulating fiat-backed stablecoins, with the Bank of Canada responsible for oversight. The planned legislation will require issuers to maintain 1:1 reserves, establish redemption policies, implement risk management frameworks, and safeguard personal data. Amendments to the Retail Payment Activities Act will introduce national security measures to protect Canada’s financial system. Industry leaders, including the Canadian Web3 Council and Tetra Digital Group, welcomed the move, viewing it as vital to fostering innovation and competition in payments. The initiative follows the U.S. GENIUS Act and signals Canada’s intent to treat stablecoins as payment instruments rather than securities.