Canada’s Digital Dollar Ambition: Stablecoin Rules Pave Way for Payment Modernization

Reading Time: < 1 minute

Canada is laying the groundwork for a modernized financial system with plans to regulate stablecoins, a key component of its 2025 federal budget. The proposed laws aim to make digital transactions “faster, cheaper, and more secure” for all Canadians.

Beyond just establishing reserve and redemption rules for issuers, the initiative is part of a larger vision to overhaul the nation’s payment infrastructure. The government is backing this vision with an initial $10 million allocation to the Bank of Canada to ensure a smooth implementation.

Industry leaders are championing the move. Lucas Matheson, CEO of Coinbase Canada, told the CBC that the proposal has the potential to “change how Canadians interact with money and the internet forever.” The regulatory clarity is seen as a crucial step toward fostering responsible innovation in the digital asset space.