Bank of Canada Advocates for Stablecoin Regulation Amid Payments Modernization Lag

Bank of Canada Deputy Governor RON Morrow emphasized the need for federal oversight of stablecoins during a speech at the CPA conference in Ottawa. Stablecoins, which facilitate trillions in global transactions, must achieve bank-account-level stability before widespread adoption, Morrow asserted. Canada's cross-border payment inefficiencies—where remittance fees reach 5–10%—create ripe conditions for stablecoin disruption.

Remittance costs in Canada significantly outstrip those in the U.S. and U.K., disproportionately affecting immigrant workers. Experts suggest stablecoins could slash fees to under 1%, mirroring gains seen in other jurisdictions. "There's scope for massive change, but caution is paramount," Morrow noted, underscoring the tension between innovation and consumer protection.