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Canada’s Approach to Stablecoins Explained: Safety First, Innovation Second
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- Canada will permit only stablecoins pegged one-to-one to a central bank currency like the Canadian dollar.
- Approved stablecoins must be backed by high-quality liquid assets such as government bonds and Treasury bills.
- Issuers will face strict reserve, redemption, and risk management requirements under the new framework.
Canada’s central bank says only tightly controlled stablecoins will be allowed in the country’s financial system.
Bank of Canada Governor Tiff Macklem said approved stablecoins must be pegged one-to-one to a central bank currency, such as the Canadian dollar, and fully backed by high-quality liquid assets.
The ‘Good Money’ Mandate
Those assets must be easy to convert into cash, with government bonds and Treasury bills cited as acceptable examples. Stablecoins backed by riskier investments or complex financial structures are unlikely to qu…
Read The Full Article Canada’s Approach to Stablecoins Explained: Safety First, Innovation Second On Coin Edition.
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Canada’s Approach to Stablecoins Explained: Safety First, Innovation Second
Share:
- Canada will permit only stablecoins pegged one-to-one to a central bank currency like the Canadian dollar.
- Approved stablecoins must be backed by high-quality liquid assets such as government bonds and Treasury bills.
- Issuers will face strict reserve, redemption, and risk management requirements under the new framework.
Canada’s central bank says only tightly controlled stablecoins will be allowed in the country’s financial system.
Bank of Canada Governor Tiff Macklem said approved stablecoins must be pegged one-to-one to a central bank currency, such as the Canadian dollar, and fully backed by high-quality liquid assets.
The ‘Good Money’ Mandate
Those assets must be easy to convert into cash, with government bonds and Treasury bills cited as acceptable examples. Stablecoins backed by riskier investments or complex financial structures are unlikely to qu…
Read The Full Article Canada’s Approach to Stablecoins Explained: Safety First, Innovation Second On Coin Edition.
Read More
FDIC Moves to Formalize How Banks Can Issue Stablecoins Under GENIUS Act