Bank of Canada Demands Reserve-Backed Stablecoins With Ironclad Redemption
Canada's central bank is tightening the screws on stablecoin issuers. Governor Tiff Macklem insists any digital currency bearing the 'stable' moniker must behave like traditional money—not a speculative asset with promises attached. 'We want stablecoins to be good money, like bank notes or deposits,' Macklem told the Montreal Chamber of Commerce.
The requirements are blunt: 1:1 peg to fiat currencies, backstop by high-quality liquid assets. Translation—government treasuries and bonds that can be liquidated instantly without haircuts. No exceptions. No wiggle room.
Macklem's warning shot comes as Ottawa prepares stablecoin legislation. The subtext is clear: Canada won't tolerate another Terra/Luna collapse. 'Convertibility at par isn't a feature—it's the entire product,' he emphasized.
