The Bank of Canada has laid out strict standards for stablecoins as the country looks to implement a regulatory framework for the sector in 2026.
Summary
- Bank of Canada says all stablecoins must be pegged to central bank currency and backed by high-quality liquid assets.
- New rules will be developed in 2026 alongside the Department of Finance to ensure stablecoin safety and transparency.
While addressing the Montreal Chamber of Commerce, Bank of Canada Governor Tiff Macklem stressed that any stablecoins issued within Canadian borders must function like trustworthy forms of money and be backed by what he called “high quality liquid assets.”
“We want stablecoins to be good money, like bank notes or money on deposit at banks. That requires a few critical elements,” Macklem said.
He went on to add that stablecoins must be “pegged at a one to one ratio to a central bank currency,” and any such tokens must only be backed by liquid government assets so “it can always be converted to cash at par.”
At the same time, issuers must be completely transparent about redemption conditions and disclose vital information such as timing, applicable fees, and terms of conversion. They must also have “enough operational resilience” to make the stablecoin reliable.
“The goal is to ensure Canadians can leverage the innovation of stablecoins and do so safely,” he said.
The Bank of Canada will work closely with the Department of Finance Canada to help shape the rules next year, “so Canadians can use stablecoins with confidence,” Macklem added.
As previously reported by crypto.news, Canada’s 2025 federal budget included new provisions for stablecoins as a central part of its effort to support innovation in digital finance. The Bank of Canada is expected to allocate ten million dollars over two years starting in 2026 to administer the framework.
Canada wants its financial system to catch up with jurisdictions like the United States, where clear stablecoin policies are already being pursued, but it wants to do so in a way that protects users and ensures long-term trust.
According to the budget documents, Canada will amend its Retail Payment Activities Act to allow oversight of payment service providers that handle stablecoin transactions.
“The legislation will also include national security safeguards to support the integrity of the framework so that fiat-backed stablecoins are safe and secure for consumers and businesses to use,” the documents noted.
