Bank of Canada Sets Standards for "High-Quality" Stablecoins

Golden Finance reports that the Bank of Canada stated that under the new stablecoin regulatory framework expected to be implemented in 2026, only high-quality stablecoins linked to central bank currency will be approved, ensuring that stablecoins can serve as "high-quality currency." Bank of Canada Governor Tiff Macklem told the Montreal Chamber of Commerce on Tuesday, "We want stablecoins to function like banknotes or demand deposits, as a form of high-quality currency." Macklem proposed that stablecoins must maintain a 1:1 peg with a central bank currency, and their reserve assets must be "high-liquidity high-quality assets," which can be quickly converted into cash. Typical assets include short-term government bonds and treasury bonds. This statement comes after the release of Canada's 2025 budget report. The report, published in early November, explicitly requires stablecoin issuers to hold sufficient reserves, establish comprehensive redemption policies, and develop various risk management frameworks, including measures to protect personal financial data.