Canada Wants Its Stablecoins to Behave Like Real Money—No Exceptions
Canada is stepping up. The Bank of Canada just made it crystal clear: if stablecoins want to play in the big leagues, they need to act like actual money. No hype, no fluff, no “promises”, just reliable, redeemable cash.
Governor Tiff Macklem told the Montreal Chamber of Commerce that any future Canadian stablecoin must hold its value at par and be fully backed by liquid, government-backed assets like treasury bills or bonds. “We want stablecoins to be good money, like bank notes or money on deposit at banks,” he said. Simple. Direct. Non-negotiable.
Why This Matters:
If a stablecoin can’t be redeemed at a one-to-one ratio with the Canadian dollar, it doesn’t belong in your wallet. And it has to be easy to convert into cash, without hidden fees or delays. Macklem emphasized that users should always know exactly what they’re getting before trusting stablecoins for daily transactions.
This push comes as Ottawa prepares to roll out stablecoin regulations next year. The goal is to modernize Canada’s financial system while keeping pace with global players, including the U.S., which recently established clearer rules for dollar-backed stablecoins through the GENIUS Act.
Macklem made one thing abundantly clear: this isn’t a stamp of approval. “It’s not really up to the Bank of Canada to encourage or discourage stablecoins,” he said. “Our job is to make sure that if Canadians and Canadian businesses want to use stablecoins, they are, in fact, stable.”
The stablecoin debate is part of a bigger picture. Canada is also revamping its payments infrastructure, with projects like the Real-Time Rail system for instant settlements, including cross-border payments—and open banking initiatives to let consumers easily compare and switch services.
Conclusion
Canada isn’t banning stablecoins. It’s demanding accountability. And if you want to play in its digital dollar sandbox, you better come prepared.
