Canada to Regulate Stablecoins by 2025: Budget Unveils New Rules

Canada’s 2025 budget plan includes a significant step towards regulating stablecoins, aiming to enhance the safety and reliability of digital payments. The move follows similar initiatives in the U.S., with the Bank of Canada committing $10 million for oversight starting in 2026. The new regulations will require issuers to hold sufficient reserves and establish clear redemption policies for fiat-backed stablecoins, ensuring faster, safer, and more secure transactions for Canadians. This action seeks to solidify its position as a leader in the digital finance space.