The Bank of Canada has advocated for the regulation of stablecoins.
Date: 2025-09-19 Author: Henry Casey Categories: CRYPTO PAYMENTS
Ron Morrow, Executive Director of Payments, Supervision, and Compliance at the Bank of Canada, emphasized in his speech at the Chartered Accountants Conference in Ottawa that the country risks losing ground if it delays steps in this area. According to him, even moving in the right direction will not prevent falling behind unless proactive action is taken.
Morrow called on federal and provincial regulators to develop uniform rules for stablecoins. He noted that such tokens must be as secure as funds in a bank account. Only then can they be considered fully-fledged money. The importance of regulation stems from the need to protect users from liquidity risks and credit threats.
He also emphasized that many countries have already introduced or are preparing similar regulations. Against this backdrop, Canada risks playing catch-up, especially given that the global stablecoin market is currently almost entirely focused on assets pegged to the US dollar.
Morrow's statement comes amid growing interest in stablecoins, dubbed the "summer of stablecoins" in the industry. In the US, this was facilitated by the passage of the GENIUS Act, which created a legal framework for the widespread adoption of such instruments.
It's worth noting that the Bank of Canada previously considered issuing its own central bank digital currency (CBDC). A research project was launched in collaboration with the Massachusetts Institute of Technology in 2022, but the initiative was abandoned in September 2024. The regulator decided to focus on other issues, including the creation of an instant payments system.
Public surveys showed mixed attitudes toward a CBDC: approximately 42% supported the idea, while approximately 20% expressed strong opposition. Within the cryptocurrency community, attitudes toward this instrument are also mixed. Opponents believe such digital currencies could contradict the principles of open finance and lead to excessive government control.
Therefore, Canada is shifting its focus from issuing its own digital currency to establishing regulations for private stablecoins. Experts believe this strategy will ensure user security, modernize the financial system, and maintain the country's competitiveness in the global race for new digital payment standards.
