Canada is preparing to enact new legislation regarding stablecoins. These rules are part of the country’s 2025 federal budget. The goal is to make real money-backed tokens more secure and trustworthy for users.
Stablecoins are digital coins that are tied to a specific asset, such as the US dollar. Many people use these to quickly transfer money online without significant price fluctuations. Canada says clear rules are needed because the market is growing rapidly.
Strong reserves and user protection
The plan requires stablecoin issuers to hold sufficient reserves to support the value of their tokens. It should also allow users to redeem coins for real money and set clear safety and privacy measures.
🇨🇦 Canada has taken a big step forward.
Today’s federal budget includes new guidance on stablecoin regulation, marking progress towards introducing faster, cheaper and borderless payments.
With 60,000 supporters strong, Stand with Crypto Canada will continue to be a driving force… pic.twitter.com/C0ZiO3GLsR
— Stand with Crypto Canada🇨🇦 (@StandWCrypto_CA) November 4, 2025
As previously reported, the Bank of Canada will help oversee this system. The company plans to spend $10 million over two years starting in 2026 to build proper monitoring tools. After that, the company expects to spend about $5 million a year. These costs are borne by stablecoin companies that are regulated under the Canadian Payments Act.
The move follows the United States, which approved major stablecoin regulations earlier this year. Canada did not give an exact date when the bill would be tabled in Parliament, but did say regulations were forthcoming.
JUST IN: 🇨🇦 Canada announces groundbreaking stablecoin regulations
The 2025 Union Budget will introduce a complete framework for fiat-backed stablecoins, requiring issuers to hold reserves, enable redemption, and meet transparency and security standards.
🧠The Bank of Canada will oversee… pic.twitter.com/N75ZxKeA7o
— Jessica Gonzalez (@lil_disruptor) November 5, 2025
Growing institutional interest
Stablecoins have grown into a global market worth over $300 billion. Some experts expect that number to rise to around $2 trillion by 2028. Big companies like Western Union, SWIFT, and MoneyGram are already exploring stablecoin technology to make money transfers faster and cheaper.
In Canada, a company called Tetra Digital is working on a stable digital version of the Canadian dollar. It has raised funding from a large group including Shopify, Wealthsimple, and National Bank of Canada.
The plan comes after Canada paused work on developing a central bank digital currency in 2024. At the time, officials said there was no urgent need.
What does it mean for Canadians?
Canada’s new stablecoin legislation could make payments easier, safer and more affordable. The rules could also allow more people and businesses to use digital money with confidence. The country is taking a cautious and gradual approach, but this marks a clear transition to modern digital finance.
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