Following the lead of the U.S., Canada is introducing new regulations for fiat-backed stablecoins in its 2025 federal budget. These rules, detailed in the budget report, aim to improve financial security and user protection while ensuring a clear redemption process. The Bank of Canada will oversee this system and use funding from the Consolidated Revenue Fund to cover initial costs before relying on fees charged by stablecoin issuers. The government also intends to update the Retail Payment Activities Act, bringing stablecoin services under Canadian regulatory oversight. These changes aim to provide Canadians with safer and more reliable digital money transactions. While no specific timeline has been established for legislation introduction, experts welcome this step, acknowledging its importance in a nation grappling with mixed jurisdiction authority.