Cryptocurrency: Canada Introduces Its Stablecoin Bill

Canadian stablecoins. With the Canadian dollar struggling against the US dollar in recent months, the Govt of Canada clearly wants to implement clear stablecoin legislation . After signing of the GENIUS Act by US President Donald Trump about stablecoins last July, it seems that Canada also wants to fully regulate and legalize this type of cryptocurrency.

Key points of this article:

• Canada announces in its budget a draft regulation on the regulation of stablecoins for the purpose of clarification their legal status.
• The Canadian government wants to avoid capital flight to USD-backed stablecoins such as USDT or USDC.

The Canadian government wants to clarify the status of stablecoins. Last federal budget of Canada was published on the official website of the government on November 4, 2025. In particular, it contains an installation proposal new rules for stablecoins, pegged to fiat currencies (dollar, euro, etc.).

According to the budget document, issuers of stablecoins will have to maintain and manage ” adequate ” by reserves, establish ” redemption policy “, implement ” risk management systems ” and ” protect personal information “. In short, ensuring your cryptocurrencies comply with these regulations will expensive a task for issuers.

Bank of Canada will be responsible for implementing this new legislation with a budget of $10 million over two years, during the first two years of 2026 and 2027. After that, annual costs are estimated at $5 million. These costs will be ” covered by fees charged to regulated stablecoin issuers “.

Canada wants to prevent capital flight to US dollar cryptocurrencies (USDT, USDC, etc.). The Government of Canada consulted with industry stakeholders and regulators to determine your strategy regarding this particular type of cryptocurrency. Discussions focused on their classification and on how prevent capital outflow to stablecoins backed up US dollar such as Tether’s USDT or Circle’s USDC.

The announcement comes after the United States passed its own stablecoin law in July 2025, The law of GENIUS as mentioned in the introduction. This law established key rules for cryptocurrencies pegged to the US dollar in order to preserve the strength of the US currency as world reserve currency .

Canada hopes to position itself as a leader in financial innovation while protecting its economy and monetary sovereignty. It remains to be seen whether will contribute is the regulation of the development of stablecoins, or will hinder him in contrast to MiCA regulation in the European Union, which favors the big crypto players to the detriment of smaller ones, leading to centralization and limiting innovation.

Source: journalducoin.com