Following the United States’ GENIUS Act, Canada plans to legislate to regulate stablecoins backed by fiat currencies

PANews reported on November 5 that the Canadian government announced plans to introduce stablecoin regulatory laws in the 2025 federal budget, requiring issuers of stablecoins backed by legal currency to maintain sufficient reserves, formulate 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 by the United States in July.

The Bank of Canada will begin to allocate a budget of CAD 10 million in the 2026-2027 fiscal year to ensure the smooth implementation of supervision. It is expected to cost CAD 5 million annually, which will be borne by stablecoin issuers regulated by the Retail Payment Activities Act.

Coinbase Canada CEO Lucas Matheson expressed optimism about the proposal, which he believes will completely change the way Canadians use currency and the Internet. Currently, the stablecoin market is $309.1 billion and is expected to grow to $2 trillion by 2028.

In addition, Canadian payment platform Tetra Digital has raised US$10 million and plans to create a digital version of the Canadian dollar. Investors include Shopify, Wealthsimple and the National Bank of Canada. It is worth noting that Canada abandoned plans to issue a central bank digital currency (CBDC) in September 2024.

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