Overview
- The budget commits to a federal law for fiat-backed stablecoins that mandates robust reserves, clear redemption rights, risk management, data protection and national security safeguards.
- The Bank of Canada will administer the regime with $10 million over 2026–27 for setup, with roughly $5 million in annual costs later recovered from regulated issuers.
- Planned amendments to the Retail Payment Activities Act will enable supervision of payment providers that use prescribed stablecoins for transactions.
- Governor Tiff Macklem outlined expectations for backing in high-quality, short-term liquid assets, convertibility at par and strong operational resilience, while the finance minister indicated a payments-focused regulatory approach rather than securities treatment.
- The move follows the U.S. GENIUS Act and drew support from industry groups and firms such as Coinbase Canada and Shakepay, with timelines and detailed rules to be developed after Canada shelved a CBDC in 2024.