Ottawa’s stablecoin framework a key step toward monetary sovereignty, advocates say

In its budget, the federal government said the Bank of Canada would administer the planned new legislation for stablecoins.

The federal government’s swift movement toward regulating stablecoins signals a growing recognition that this class of crypto assets is key to monetary sovereignty, according to digital currency advocates and issuers.

Ottawa released a long-awaited new framework for stablecoins on Monday. The proposed regulation would apply to a type of crypto cash that requires issuers to hold reserves such as fiat currency.

The 32-page document expanded on rules previously announced in the federal budget earlier this month, which gave Canada’s central bank the reins to administer the new legislation. The spending plan narrowly passed Monday after a crucial confidence vote.

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