Canada faces risks from unregulated U.S. stablecoins

Canada is expediting regulations for stablecoins in anticipation of the federal budget documents that Finance Minister François-Philippe Champagne will unveil on November ￰0￱ Ruffolo, founder of Maverix Private Equity and vice chair of the digital lobby group Council of Canadian Innovators, suggested that the government should move swiftly to regulate Canadian-dollar ￰1￱ emphasized that if the government doesn’t move swiftly, Canadian capital will move south of the border. Additionally, he argued that if Canadian-dollar stablecoins are not regulated, Canadian savers may opt to deposit ￰2￱ instead, which facilitates international money ￰3￱ emphasized that the market for Canadian bonds would decline if Canadian savers deposit U.

S. stablecoins, potentially leading to higher interest ￰4￱ Rufollo also stated that the Bank of Canada’s control over the money supply would be loosened, and ￰5￱ would gain authority over capital stored in stablecoins backed by US ￰6￱ faces risks from unregulated ￰7￱ Earlier this month, Ruffolo explained that every time Canadians transact in a U. S. stablecoin, they fund ￰8￱ debt, enriching American institutions, and exporting Canadian financial data ￰9￱ maintained that the Canadian economy will become even more dependent on American stablecoins if they truly take off in the ￰10￱ GENIUS Act is boosting demand for ￰11￱ Every new stablecoin must be backed 1:1 by Treasuries, pushing global institutions to buy American bonds to mint digital ￰12￱ dollar may be fading, but it’s ￰13￱ upgrading its payment rails for the digital era, the… ￰14￱ — ￰15￱ (@DenarioSwiss) October 27, 2025 Mirza Shaheryar Baig, a foreign exchange strategist at Desjardins, stated that foreign adoption creates new and sticky demand for ￰16￱ because the GENIUS Act mandates that stablecoins be backed primarily by ￰17￱ emphasized that over 99% of the stablecoins value is now based on the ￰18￱ September, Ron Morrow urged Canada to consider regulating stablecoins at the federal level, like other ￰19￱ claimed the absence of stablecoin regulations in the country has drawn criticism from the Office of the Superintendent of Financial Institutions, which oversees banks in the ￰20￱ a recent LinkedIn post, Carolyn Wilkins, a former senior deputy governor at the Bank of Canada, claimed that Canada requires a legal and regulatory framework that supports its competitiveness in modern Canadian dollar ￰21￱ moves to regulate stablecoins for financial stability On September 19, Cryptopolitan reported that the central bank of Canada intensified its efforts to regulate stablecoins, aiming to keep the country competitive in the rapidly evolving global financial ￰22￱ the meeting of Chartered Professional Accountants, the Bank of Canada underlined the need for immediate action in modernizing the payment ￰23￱ bank stated that if Canada doesn’t quickly modernize its payment environment, it could lag behind other countries as their regulatory frameworks ￰24￱ Bank of Canada recognized the rapid expansion of stablecoins in cross-border payments and commercial use.

Canada’s central bank noted that daily stablecoin transactions now total around US$2.7 billion and annual usage is approaching US$1 ￰25￱ the swift expansion of stablecoins, stablecoins remain largely outside traditional regulatory systems in ￰26￱ Canadian central bank noted that systemic risk, economic stability, and consumer protection are all at risk due to the supervisory ￰27￱ bank claimed that tying tokens to fiat money and stablecoin legislation can lower volatility and boost security. Canada’s central bank said that the country is under pressure to adopt systems previously used in the ￰28￱ Europe as global instances ￰29￱ Bank called for the creation of a national stablecoin regulation policy by federal and provincial ￰30￱ Canadian central bank revealed that Consumers are exposed to liquidity risks and lack the safeguards typically found in traditional finance due to the absence of ￰31￱ central bank suggested that the Federal anti-money laundering regulations and provincial securities legislation are insufficient to control the rising use of ￰32￱ bank said that a federal regulatory framework could be established to ensure that these digital assets are as reliable as bank ￰33￱ Bank for International Settlements (BIS) issued a warning about the possible abuse of unregulated ￰34￱ to the BIS, Canada can enhance its standing in the international economy by adhering to clear regulatory frameworks and maintaining asset-backed ￰35￱ your free seat in an exclusive crypto trading community - limited to 1,000 members.