Global #Bank of Canada

The Bank of Canada is moving toward a strict regulatory framework for stablecoins, with Governor Tiff Macklem emphasizing that these digital assets must function as reliable currency rather than speculative investments.

Canada is pivoting its digital currency strategy, moving away from exploring a central bank digital currency (CBDC) to focus on regulating private, fiat-backed stablecoins as the core of its national payments system upgrade.

Canadian banking regulators, including the Office of the Superintendent of Financial Institutions (OSFI) and the Bank of Canada, have announced plans to develop a regulatory framework for stablecoins.

In a significant update last week, the Bank of Canada announced a shift in its approach to central bank digital currency (CBDC) development, moving away from the idea of a retail digital Canadian dollar.

In a recent address, Tiff Macklem, Governor of the Bank of Canada, highlighted the dual-edged nature of artificial intelligence (AI) and its potential implications for inflation and financial stability.

The Bank of Canada has decided to halt its efforts to introduce a digital version of the Canadian dollar, shifting its focus instead to broader developments in the payment systems both domestically and internationally.