Bank of Canada Pushes for Stablecoin Guardrails as Adoption Rises

The Bank of Canada is calling for federal stablecoin regulation, warning that Canada risks falling behind the U.S. and U.K. in modernizing payments.

Senior Deputy Governor Ron Morrow highlighted that remittance fees in Canada are significantly higher than in other developed nations, with migrant workers often losing 5–10% when sending money abroad. Stablecoins, by contrast, could reduce costs to under 1%, making them a powerful tool for cheaper, faster cross-border payments.

Despite growing domestic use, Canada still lacks federal stablecoin rules, relying on provincial securities oversight and AML provisions. Morrow urged lawmakers to consider a national framework, while experts warned Canadian firms could miss out on global opportunities without innovation-friendly regulations. Analysts stressed that success will depend on integration with local payment systems, international interoperability, and regulatory clarity—especially as stablecoins become central to global trade.

Clever Robot News Desk 21^th September 2025