Overview
- Budget 2025 commits to legislation creating a framework for fiat-backed stablecoins as part of payments modernization.
- Issuers would be required to hold adequate reserves, provide clear redemption rights, implement risk management, protect user data, and meet national‑security safeguards.
- The Bank of Canada will administer the regime with CA$10 million over two years starting in 2026‑27 and about CA$5 million in ongoing annual costs to be recovered from regulated issuers.
- Amendments to the Retail Payment Activities Act will enable supervision of payment service providers that use prescribed stablecoins for payments.
- The move aligns Canada with global efforts such as the U.S. GENIUS Act, draws support from industry groups and firms including Coinbase, Shakepay and Tetra Digital, and comes as legislative text and an exact tabling date remain unpublished.