The Canadian Web3 Council commends the federal government for recognizing the critical importance of stablecoin legislation in Budget 2025. This reflects the government’s commitment to move quickly on strategic initiatives vital to Canada’s long-term prosperity and monetary sovereignty. We’re pleased that blockchain-based payment systems are part of that vision, and we appreciate the opportunity to provide input during the consultation process.
We are encouraged by the government’s commitment to enable innovators to issue stablecoins, which will foster competition in Canada’s payments market and reduce transaction costs for consumers and businesses. The Bank of Canada’s proposed oversight role demonstrates a clear understanding of the importance of stablecoins to our financial infrastructure.
The real work starts now to promote an efficient, open, and sound financial services sector within Canada. Budget 2025 makes it clear that the federal government intends to regulate stablecoin issuance and usage. We hope that this will encourage the Canadian Securities Administrators (CSA) to work collaboratively with the Bank of Canada on a transition plan that streamlines regulations. Regulatory overlap could place Canadian innovators at a competitive disadvantage compared to a clearer framework in the United States.
Our key recommendation is a comprehensive three-pillar framework that balances innovation and competition with financial stability:
- A tiered regulatory structure enabling both provincial and federal pathways
- Clarity on the permitted activities of stablecoin issuers and service providers
- Forward-thinking integration with Canada’s payment infrastructure
Moving Forward: We look forward to reviewing the legislation and continuing collaboration with Finance Canada, the Bank of Canada, and regulatory authorities to ensure the final framework positions Canada as a leader rather than a follower in digital finance. With the right regulatory structure, Canada can foster homegrown innovation while protecting monetary sovereignty.
The Council stands ready to support the government in making Canada a competitive jurisdiction for responsible stablecoin innovation.
