The Bank of Canada will only approve high-quality stablecoins pegged to central bank digital currency

December 17 — The Bank of Canada has explicitly stated it will only approve “high-quality” stablecoins pegged to central bank currencies under upcoming 2026 regulations, aiming to turn them into “sound money” akin to banknotes or bank deposits. Bank of Canada Governor Tiff Macklem made the remarks Tuesday at the Montreal Chamber of Commerce. He emphasized stablecoins must maintain a 1:1 peg to central bank currencies and be backed by “high-quality liquid assets” — typically Treasury bills and government bonds — that are easily convertible to cash. The announcement comes on the heels of Canada’s lengthy “2025 Budget Report” released in early November, which outlined requirements for stablecoin issuers: holding sufficient reserves, establishing redemption policies, implementing risk management frameworks (including personal and financial data protection) and adhering to other safeguards. “Our goal is to ensure Canadians can safely tap into the innovative potential of stablecoins,” Macklem noted.