Regulation of the Bank of Canada Eyes Stablecoin

The Central Bank of Canada has called on the country to establish a Stablecoin regulation framework to modernize the payment system and prevent fall in other countries that are advancing such policies.

“Even if you’re on the right track, you’ll run if you’re sitting there,” Ron Morrow, Executive Director of Payments, Management and Management of the Bank of Canada, said in a speech Thursday at a chartered professional accountants conference in Ottawa, Canada, A Transcript which has been published on the Central Bank website.

Morrow called on federal and provincial regulators at Create a policy framework for stablecoins. “At the end of the day, for stablecoins to be seen as money, they need to be safe and stable as a balance in your bank account,” Morrow said, and adding:

“Governments are moving to organize stablecoins and other cryptocurrencies so that consumers can reap their benefits and protect from credit and liquidity risks. In fact, many constituents around the world have, or soon there will be, a regulatory framework for crypto assets.”

Comments come in the middle of what many in the crypto industry called “Stablecoin Summer,” a reference to the Renaissance Stablecoins that is experiencing following the Passing the Genius Act In the United States, preparing the way for the masses of the stalls.

Related: ASIC licensing policies for Stablecoin distributors in Australia

Bank of Canada Backtracks to Central Bank Digital Currency Plans

In 2022, the Central Bank of Canada cooperated with the Massachusetts Institute of Technology (MIT), a global recognized university of science and tech research, To produce a central digital currency (CBDC).

However, in September 2024, the bank left its CBDC plans To focus on other priorities, including the development of a real-time payment system that will allow users to receive funds immediately.