Particle.news
Download on the App Store

Canada to Regulate Fiat-Backed Stablecoins Under 2025 Budget

The Bank of Canada will oversee the regime with CA$10 million in start-up funding.

Overview

  • The new framework mandates full reserves, clear redemption rights, robust risk management, personal data protections, and national security safeguards for fiat‑backed tokens.
  • Amendments to the Retail Payment Activities Act will allow federal supervision of payment providers that conduct functions using prescribed stablecoins.
  • The plan marks a policy pivot from a shelved retail CBDC toward enabling privately issued, federally overseen stablecoins to modernize payments.
  • Industry groups praised the move, and Calgary-based Tetra Digital raised CA$10 million to build a Canadian‑dollar stablecoin backed by Shopify, Wealthsimple and National Bank.
  • Key details remain unspecified, including the timetable for tabling the bill and the scope of security measures, as the U.S. and U.K. press ahead with their own stablecoin regimes.