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

BlockBeats News, December 17th - The Bank of Canada has explicitly stated that under its upcoming stablecoin regulations expected in 2026, it will only approve "high-quality" stablecoins pegged to central bank currencies to ensure they become "sound money." "We want stablecoins to be sound money, like banknotes or bank deposits," Governor Tiff Macklem said on Tuesday at the Montreal Chamber of Commerce.

Macklem demanded that stablecoins must maintain a 1:1 peg to central bank currency and be backed by "high-quality liquid assets" that can be easily converted to cash, usually including treasury bills and government bonds. This statement follows the lengthy "2025 Budget Report" released by Canada in early November, which outlined that stablecoin issuers will be required to hold sufficient reserves, establish redemption policies, and implement various risk management frameworks, including protecting personal and financial data.

"The goal is to ensure that Canadians can safely leverage the innovative potential of stablecoins," Macklem said.