Canada to Only Approve ‘Good Money’ Stablecoins
The Bank of Canada plans to only approve stablecoins that are high-quality, backed one-to-one by central bank currencies, and supported by highly liquid assets such as Treasury bills or government bonds. These measures are intended to make stablecoins as reliable as cash or traditional bank deposits. Under upcoming stablecoin regulations expected in 2026, issuers must maintain sufficient reserves, have clear redemption policies, implement robust risk management, and protect user data. The policy aims to support safe innovation and improve digital transaction efficiency for Canadians, within a global context of growing stablecoin oversight. The move follows similar regulatory actions in the US, UK, and Hong Kong and aligns with broader efforts to modernize Canada’s financial system, including a new real-time payments infrastructure and open banking. Canada has decided not to move forward with issuing its own central bank digital currency for now, citing a lack of compelling need.
