The Bank of Canada is moving to set clear and firm expectations for stablecoins, signaling how the country plans to regulate the growing sector when a formal framework rolls out in 2026.
Speaking at the Montreal Chamber of Commerce, Bank of Canada Governor Tiff Macklem said any stablecoin issued in Canada must operate like a reliable form of money — similar to cash or bank deposits. According to Macklem, that means strict rules around backing, transparency, and operational strength.
At the center of the proposal is a requirement that all stablecoins be fully pegged to a central bank currency. Macklem emphasized that these digital tokens must maintain a one-to-one ratio with sovereign currency and be supported only by “high-quality liquid assets.” In practice, this means reserves should be made up of liquid government-backed assets, ensuring the stablecoin can always be redeemed for cash at face value.
“We want stablecoins to be good money, like bank notes or money on deposit at banks,” Macklem said, adding that strong foundations are essential for public trust.
Transparency is another major focus. Stablecoin issuers will be expected to clearly disclose how and when users can redeem their tokens. This includes publishing details on redemption timelines, applicable fees, and conversion terms. Macklem also noted that issuers must demonstrate sufficient operational resilience, ensuring systems remain reliable even during periods of stress.
The broader aim, he said, is to allow Canadians to benefit from stablecoin innovation without exposing users to unnecessary risk. “The goal is to ensure Canadians can leverage the innovation of stablecoins and do so safely,” Macklem stated.
The Bank of Canada plans to work closely with the Department of Finance Canada throughout 2026 to finalize the regulatory framework. Macklem said this collaboration will help ensure stablecoins can be used “with confidence” across the country.
Stablecoins gain place in Canada’s federal budget
Canada’s push toward stablecoin regulation is already reflected in its 2025 federal budget. As previously reported by crypto.news, stablecoins were highlighted as a key part of the government’s strategy to encourage innovation in digital finance while maintaining financial stability.
Under the budget plan, the Bank of Canada is expected to receive $10 million over two years starting in 2026 to help administer and oversee the new stablecoin framework.
The government has also made it clear that it wants Canada’s financial system to keep pace with global developments. Jurisdictions such as the United States are actively working on stablecoin policies, and Canada aims to remain competitive while prioritizing consumer protection and long-term trust.
To support this goal, the federal government plans to amend the Retail Payment Activities Act. These changes would expand oversight to include payment service providers that process stablecoin transactions.
According to the budget documents, the updated legislation will also introduce national security safeguards designed to protect the integrity of the system. The intent is to ensure fiat-backed stablecoins remain safe and secure for both consumers and businesses as adoption grows across the Canadian economy.
Also Read: Canada Sets Tough Stablecoin Rules Ahead of 2026 Framework
