Canada Eyes Stablecoin Rules as Scotiabank Flags Limited Market Impact

Scotiabank economist Derek Holt stated that Canada's upcoming stablecoin framework is focused on upgrading payment speed, efficiency, and 24/7 settlement, rather than managing systemic risk, despite the government's commitment to legislation following the U.S. example. Stablecoins, which are cryptocurrencies pegged to assets like fiat currency, play a major role in crypto markets, with Tether's USDT being the largest. Holt noted that while large stablecoin reserves parked in short-term Treasuries have drawn scrutiny regarding potential forced liquidations during a run, stablecoins remain a small fraction of global finance. For Canada specifically, Scotiabank sees the main benefit in improving cross-border payments through lower costs and round-the-clock settlement, provided issuers maintain stability.

(Source：CoinDesk)