Bank of Canada Urges Swift Stablecoin Regulation Amid Global Payments Shift

The Bank of Canada has warned that the country risks falling behind in modernizing its payment systems unless it accelerates regulatory frameworks for stablecoins. Ron Morrow, the central bank’s executive director of payments supervision, emphasized the need for national oversight during a conference in Ottawa. "For stablecoins to function as viable money, they must be as SAFE and stable as traditional bank balances," he stated.

Global momentum is building, with the U.S. passing the GENIUS Act and the EU advancing its MiCA legislation—both prioritizing transparency, reserve adequacy, and consumer protection. Canada’s Office of the Superintendent of Financial Institutions (OSFI) has acknowledged the urgency, signaling potential action to align with international standards.

The push reflects broader adoption of digital payments, where stablecoins offer cost-effective, near-instant settlement. Without decisive measures, Canada risks isolation in an evolving financial landscape.