Canada Bank requires rapid stable regulations

The Stablecoins market is developing rapidly worldwide, and governments are working to update their rules to keep pace. In Canada, the Bank of Canada calls for decisive action, by urging federal and provincial regulators to collaborate and act quickly to establish clear rules for these digital assets.

Respond to the volatility of cryptocurrencies with stablecoins

Ron Morrow, executive director of payments, supervision and surveillance at the Banque du Canada, addressed the Conference of Authorized Professional Accountants in Ottawa. He pointed out that any serious discussion on innovation in the area of ​​payments must take into account cryptocurrencies, because they transform the way people perceive money and transactions.

Although Bitcoin remains popular, noted Morrow, its price fluctuations make it far too unstable for daily payments. Due to this volatility, very few people use it for current purchases. This created a clear need for alternatives offering a more predictable value.

Stablecoins meet this need By linking their value to stable assets, such as national currencies, making them more reliable for daily use. Morrow noted that although cross -border payments require speed and reduced costs, these solutions must also be safe and reliable, ensuring that users can count on the stability of their transactions.

There is an urgent need for faster, cheaper, more transparent and more accessible cross -bound payments. But these services must also be safe and secure.

Ron Morrow

The Executive Director has also recognized the growing role of stablecoins, noting that their use has increased in recent years and now has around $ 1,000 billion in annual transactions.

Clear rules required in the face of the rise of stablecoins

Morrow stressed that federal and provincial regulators must work together on clear rules on stablecoins, adding that for them to be considered real money, they must be as safe and stable as the funds that people keep on their bank accounts.

This request comes as the interest in these digital assets increases sharply, a period called “summer of stablecoins”. Much of this growth has followed developments in the United States, where the recent Genius law has established clearer rules for their regulations.

The legislation has brought a greater certainty to the market and opened the way to a broader adoption. Stablecoins now have a market capitalization of more than $ 305 billionaccording to CoinmarketCap.

Canada's payment system

While Canada continues to assess its own approach, criticisms often describe the country's payment network as Holder compared to its international peers. Some emphasize that it is late not only compared to advanced economies such as the United Kingdom and Australia, but also compared to certain developing countries. The concentration of the system among the largest banks in Canada has also been linked to higher costs, slower treatment and limited competition.

The Bank of Canada has already explored digital currency. In 2022, she joined the Massachusetts Institute of Technology to study a digital currency of potential central banking. But in September 2024, she chose to change focus, rather opting for the development of a real -time payment system allowing instant transfers.

Despite this change, Morrow said that Canada is still delaying from other countries in the modernization of its payment system. Progress has been slow in the adoption of new technologies, the encouragement of competition and the provision of faster and affordable services to Canadians. He stressed that the current momentum should be used to stimulate innovation and build a more competitive payment ecosystem.