The Bank of Canada moved the stablecoin debate forward on December 16, saying any token used for everyday payments in Canada must act like cash.
“We want stablecoins to be good money,” Tiff Macklem said in Montréal. Stablecoins are crypto tokens that aim to hold a fixed value, often tied to a fiat currency. Macklem tied credibility to strict redemption rights, clear disclosure, and safe assets. The remarks signal a tighter federal framework coming in 2026.
1:1 pegs, liquid reserves required
Macklem set two clear tests, a one to one peg to official money, and backing with high quality liquid assets such as Treasury bills. “A stablecoin must be pegged one to one and backed by high quality liquid assets,” he said, after the speech.
He added that redemption terms, including timing and fees, should be plainly disclosed. The aim is to make well run tokens behave like deposits for day to day use. Markets took note because design details will decide who can issue, and at what cost.
Ottawa has already put draft law on the table. Division 45 of Bill C-15 would enact a Stablecoin Act, setting the Bank of Canada’s role, creating a public registry of issuers, and spelling out reserve and redemption rules, according to the Parliament of Canada bill text.
The proposal carves out closed loop tokens and assigns anti‑money‑laundering duties through related amendments. It also ties the regime to the Retail Payment Activities Act for operational oversight. The bill is at first reading, so timelines and details can still change.
What it means for markets
For trading platforms and fintechs serving Canadians, the message is simple, bring bank grade reserves or sit out payments. Canadian Securities Administrators already allow limited trading of fiat‑backed tokens on registered platforms under strict conditions, including cash and T‑bill reserves and attestations, as set out in the CSA’s interim approach. A federal statute would put national rules behind those conditions and clarify who the lead overseer is. That matters for cost of capital, custody choices, and who can scale.
Payment modernisation is the other lever. Macklem pointed to real time settlement and open banking work that should land in 2026, which would lower frictions if tokens meet the new bar. If reserves must be held in short dated government paper, demand for bills could rise, though issuers will weigh carry costs against fee revenue.
For banks, the bar helps keep deposit-like functions inside the prudential perimeter. TSX names linked to digital assets and payments could benefit any move that boosts trust and utility could lift volumes, but compliance will not be cheap.
Canada’s approach is converging with other jurisdictions that treat well designed tokens as a payments instrument, not a speculative asset. The Canadian angle is clear, put stability and redemption first, then let firms compete on service.
The political lift now shifts to Parliament. If Bill C-15 advances on the current schedule, rules could start to phase in next year, with supervision anchored at the Bank of Canada and harmonised with provincial securities oversight. Investors, operators, and consumers will get a cleaner rulebook, and fewer grey zones.
