Bank of Canada Urges Stablecoin Regulation Amid Payment Modernization Lag
- Bank of Canada Deputy Governor Ron Morrow emphasized the need for federal stablecoin regulation.
- Canada’s remittance costs are notably higher than those in the U.S. and UK, impacting cross-border payments.
- Stablecoins could reduce remittance fees from the current range of 5–10% to less than 1%.
- The Bank of Canada warns that stablecoins must be as secure as bank balances before scaling further.
- Survey data shows nearly 60% of Canadian business leaders fear declining competitiveness without payment innovation.
Canada’s high remittance costs present a challenge for immigrant communities, highlighting an opportunity for stablecoin adoption to modernize payment infrastructure and reduce fees significantly.
The Bank of Canada stresses that while stablecoins offer modernization opportunities, they must ensure safety and stability akin to traditional banking systems before widespread adoption is feasible.( Source)
