Canada lags with stablecoin approach, but there’s room to catch up
Stablecoin adoption in Canada is slow, raising concerns about competitiveness compared to the US and EU, where regulations are more favorable. The Canadian Securities Administrators (CSA) classified stablecoins as securities/derivatives in December 2022, limiting local issuers. This regulatory approach creates uncertainty and a fragmented framework, according to industry leaders. The lack of tailored regulations may threaten the Canadian dollar's relevance as consumers may prefer USD-pegged stablecoins. Current P2P payment options in Canada are limited and costly, with high demand for more efficient digital payment methods. A Payments Canada report indicates that 91% of Canadians have never used crypto for payments, citing security concerns. Prime Minister Mark Carney has expressed skepticism about cryptocurrency but acknowledges stablecoins' potential in payments, advocating for strong regulatory safeguards. Future policies may focus on integrating stablecoins into mainstream financial systems to modernize payments and support the Canadian dollar.
