Canada is advancing the creation of a regulatory framework for stablecoins, which could be included in the federal budget on November 4. The plan aims to clarify their classification and prevent capital outflows to U.S. dollar-backed tokens.
Officials from the Department of Finance and other agencies have participated in meetings with regulators and industry firms in recent weeks. Experts warn that the lack of clarity could reduce demand for Canadian bonds, push up interest rates, and limit the Bank of Canada’s control over the money supply.
Stablecoins are gaining traction in markets worldwide: Europe has implemented the MiCA regulation, Japan and Hong Kong are advancing their own policies, and the U.S. recognizes them as payment instruments under the GENIUS Act. The stablecoin market has already surpassed $300 billion, and Standard Chartered projects it could reach $1 trillion in the coming years.
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