Prime Minister Mark Carney’s government achieved a crucial legislative victory this Monday night, securing parliamentary approval for a federal budget that establishes a new national stablecoin policy. This regulation, which was included in the extensive fiscal document, officially designates the Bank of Canada as the sector’s main supervisory body, responding to the need for regulation in 2025. The Liberal leader has pushed this agenda to modernize the North American country’s financial infrastructure.
According to details revealed in the approved document, issuers of these digital assets must maintain one-to-one reserves composed exclusively of the reference currency or high-quality liquid assets. Additionally, the legislation strictly prohibits non-bank issuers from offering any form of interest or yield to customers, whether in cash or digital assets. This measure seeks to guarantee financial stability and ensure immediate redemptions for users, aligning with the most demanding international security and risk management standards of the moment.
On the other hand, Lucas Matheson, CEO of Coinbase Canada, called the initial measure a step in the right direction after appearing publicly alongside the Prime Minister over the weekend at a sporting event. However, the executive suggested critical adjustments to the text, arguing that issuers should be allowed to share deposit yields with end users. Matheson emphasized that these modifications are essential to maintain the global influence of the Canadian dollar against the current dominance exerted by the US market over the sector.
Can Canada Compete Globally with These Restrictions?
The implementation of this regulatory framework comes at a decisive moment where the European Union and other nations are trying to increase the presence of their own currencies in the global crypto ecosystem. By formalizing the rules of the game, the national economy is expected to attract institutional players seeking legal clarity, although current restrictions on passive yields could limit initial mass adoption compared to other jurisdictions. Likewise, this move is a clear strategic attempt to prevent the local market from relying entirely on tokens pegged to the US dollar.
Although the federal budget has passed the parliamentary vote, specific procedural hurdles still exist that must be resolved before the full implementation of the technical provisions detailed in the law. The Bank of Canada is expected to soon initiate the registration and supervision process for approved applicants, thus defining the future operational landscape. The success of this initiative will depend largely on the regulator’s flexibility to adapt to the industry’s innovation demands without compromising consumer safety.
