Canada's New Stablecoin Framework Targets Issuer Reserve Requirements

Canadian consumers will gain access to safer, more reliable digital payment options. The Department of Finance is developing regulations for stablecoins following the Royal Assent of Bill C-15. The framework applies to local and international issuers. Under the new rules, issuers must maintain adequate reserves and support redemption at par in the referenced fiat currency. They must also uphold data security practices and proper corporate and financial governance. This framework complements existing federal and provincial regimes, such as the Retail Payment Activities Act.