Overview
- The budget commits to legislation setting rules for issuance and redemption and requiring adequate reserves, risk controls, and protection of personal data by stablecoin issuers.
- The Bank of Canada will administer the regime with CA$10 million over two years starting in 2026–27, with ongoing costs of about CA$5 million annually to be recovered from regulated issuers.
- Ottawa will amend the Retail Payment Activities Act to enable supervision of payment service providers that carry out payment functions using prescribed stablecoins.
- The government has not disclosed detailed national security safeguards or a timetable for tabling the bill, shifting attention to drafting and implementation.
- Industry groups praised the plan as boosting competitiveness following the U.S. GENIUS Act, as Canadian firms such as Tetra Digital prepare loonie-backed stablecoins with new funding.