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Canada Sets Plan to Regulate Fiat-Backed Stablecoins in 2025 Budget

Ottawa pivots from a retail CBDC to Bank of Canada oversight as details remain undisclosed.

Overview

  • Issuers would face rules on full reserves, clear redemption, risk management and protection of Canadians’ personal data under forthcoming legislation.
  • The Bank of Canada is assigned CA$10 million over two years starting in 2026–27 to administer the regime, with about CA$5 million in ongoing annual costs recovered from regulated issuers.
  • Amendments to the Retail Payment Activities Act will bring payment providers using prescribed stablecoins under federal supervision.
  • The budget references national security safeguards for the framework but does not specify the measures or provide a timetable for tabling the bill.
  • Industry groups welcomed the direction as Canada follows moves like the U.S. GENIUS Act; domestic efforts include Tetra Digital’s CA$10 million raise to build a loonie-backed token.