PANews reported on November 5th that the Canadian government announced plans in its 2025 federal budget to introduce stablecoin regulatory legislation. This legislation would require fiat-backed stablecoin issuers to maintain adequate reserves, develop redemption policies, and implement risk management measures, including mechanisms to protect personal and financial data. This plan follows the GENIUS Act, the stablecoin regulatory law passed in the United States in July.
The Bank of Canada will allocate a budget of CAD 10 million starting in fiscal year 2026-2027 to ensure the smooth implementation of regulations, with an estimated annual expenditure of CAD 5 million thereafter, to be borne by stablecoin issuers regulated under the Retail Payments Activities Act.
Coinbase Canada CEO Lucas Matheson expressed optimism about the proposal, believing it will revolutionize how Canadians use money and the internet. Currently, the stablecoin market is worth $309.1 billion and is projected to grow to $2 trillion by 2028.
In addition, Canadian payment platform Tetra Digital has raised $10 million to create a digital version of the Canadian dollar, with investors including Shopify, Wealthsimple, and the National Bank of Canada. It's worth noting that Canada abandoned its plans to issue a central bank digital currency (CBDC) in September 2024.
