Canada to Authorize Only ‘Quality’ Stablecoins

The Bank of Canada has indicated that it will only authorize high-quality stablecoins linked to central bank currencies to ensure that they function as “good money” under the forthcoming stablecoin regulations anticipated in 2026.

“Our aim is for stablecoins to function like good money, such as bank notes or funds on deposit with banks,” Governor Tiff Macklem stated at the Montreal Chamber of Commerce this past Tuesday.

Stablecoins should maintain a 1:1 peg to fiat: Macklem

Macklem envisions that stablecoins will be pegged at a one-to-one ratio to a central bank currency and underpinned by “high-quality liquid assets” capable of being swiftly converted into cash. These assets often include Treasury bills and government bonds.

His remarks follow Canada’s extensive 2025 budget report, released in early November, which stated that stablecoin issuers must maintain adequate reserves, develop redemption policies, and establish various risk management frameworks, including measures to safeguard personal and financial information.

Canada is among several nations seeking to modernize its financial system, aiming to make digital transactions faster, more affordable, and more secure for its over 40 million citizens.

“Our objective is to ensure that Canadians can utilize the benefits of stablecoins safely,” Macklem remarked.

Coinbase Canada CEO Lucas Matheson informed CBC last month that the proposed rules for stablecoins would “forever alter how Canadians engage with money and the internet.”