Canada Assigns Bank of Canada to Supervise Stablecoin Issuers in Federal Budget
In its 2025 federal budget, Ottawa directs the Bank of Canada to supervise stablecoin issuers and to implement a regulatory framework governing their issuance and operations. The decision centralizes oversight at the central bank and signals a shift from ad hoc guidance to formal rulemaking, aiming to close legal gaps around payments, reserve backing, custody and operational resilience.
For issuers and crypto firms this should reduce regulatory uncertainty and accelerate compliance planning, though it also raises the prospect of licensing, reserve requirements and regular examinations. The budget suggests near-term rulemaking and coordination with other federal agencies, which could align Canada with international stablecoin standards and encourage institutional adoption. The move is widely viewed as positive for market integrity and consumer protection, while reshaping how Canadian fintechs design stablecoin products for domestic use.