Canada is accelerating its efforts to establish a definitive regulatory framework for stablecoins, with the goal of including it in the federal budget update on November 4.
According to a Bloomberg report, officials are engaged in intense discussions to resolve key issues, primarily focused on preventing Canadian capital from flowing into US dollar-backed tokens.
The push for clarity responds to pressing economic concerns. Industry leaders have warned that regulatory delays could undermine demand for Canadian bonds, raise interest rates, and weaken the central bank's monetary control.
By creating a national framework, Canada aims to retain capital and resolve long-standing legal ambiguity that has led to inconsistent treatment of stablecoins, which are considered securities in some cases and derivatives in others.