Canada Approves Budget That Advances Policy for Stablecoins
Canada's government narrowly passed a federal budget establishing a new policy framework for stablecoin issuance overseen by the Bank of Canada.Summary
The Canadian government narrowly secured parliamentary approval for its federal budget, which includes a significant new policy framework governing the issuance of stablecoins under the supervision of the Bank of Canada. This policy mandates that stablecoin issuers maintain one-to-one reserves composed exclusively of the reference currency or high-quality liquid assets, ensure immediate redemptions, and adhere to strict requirements concerning risk management, cybersecurity, disclosures, and failure protocols. Notably, non-bank stablecoin issuers will be prohibited from offering any form of interest or yield on customer stablecoin deposits. While Coinbase Canada CEO Lucas Matheson called the move a "step in the right direction," he advocated for changes, including an interim path for CAD-denominated stablecoins and permission for issuers to share yield on deposits, arguing this would enhance Canada's global competitiveness.
(Source：CoinDesk)