Canada Locks In Stablecoin Rules with Narrow Budget Win

The Canadian government just made a big step forward for digital money. The federal budget was passed by a narrow vote in Parliament on November 18, 2025. This includes new rules for stablecoins, which are cryptocurrencies that are linked to real money, like the Canadian dollar.

Countries all over the world are racing to shape the future of crypto, so this move comes at a good time. Stablecoins promise a steady value, unlike Bitcoin, which can go up and down a lot. But past scandals showed that there are risks. Canada wants to make them safer now without stopping growth.

The budget makes it legal for non-banks to issue fiat-backed stablecoins. These coins are backed by real money or safe assets. Issuers must keep one-to-one reserves, which means that for every coin, there must be a dollar or equivalent in high-quality holdings.

Users can switch back to cash at any time because redemptions happen right away. Rules also cover how to handle risk, protect against cyberattacks, make clear disclosures, and make plans for what to do if something goes wrong. The Bank of Canada will be in charge of this and keep a list of approved issuers. Non-banks can’t give you interest or yields on these coins, which makes things simple and safe.

The Bank gets $10 million over two years starting in 2026 to start enforcing the rules. Later, issuers will pay for this with fees. Changes to the Retail Payment Activities Act will give payment providers who deal with stablecoins more oversight.

Industry voices are mixed but mostly positive. Coinbase Canada’s CEO, Lucas Matheson, called it “a step in the right direction.” He urged for a fast-track entry for CAD stablecoins and ways to share deposit yields to stay competitive globally.