The Bank of Canada will only approve high-quality stablecoins that are pegged to the central bank's currency

The Bank of Canada has made it clear that under the new stablecoin regulations expected to be introduced in 2026, it will only approve "high-quality" stablecoins that are pegged to central bank currency to ensure they become "good money."

"We want stablecoins to be good money, like bank notes or bank deposits," Governor Tiff Macklem said on Tuesday at the Montreal Board of Trade. Macklem stated that stablecoins must maintain a 1:1 peg ratio with central bank currency and be backed by "high-quality liquid assets," which should be easily convertible to cash, typically including treasury bills and government bonds.

This statement follows the lengthy "2025 Budget Report" released by Canada in early November. The report indicated that stablecoin issuers will be required to hold sufficient reserves, establish redemption policies, and implement various risk management frameworks, including protections for personal and financial data. "The goal is to ensure that Canadians can safely benefit from the innovative advantages of stablecoins," Macklem said.