Canada Unveils Stablecoin Regulation Framework in 2025 Budget

Summary

The post reports that Canada’s 2025 budget introduces a fiat‑backed stablecoin regulatory framework, mandating issuers to hold adequate reserves, set redemption policies, and implement robust data‑risk management systems. The government will allocate $10 million for the initiative starting in fiscal 2026‑27, with ongoing costs covered by regulated issuers, as the domestic stablecoin market sits at $309.1 billion and is projected to reach $2 trillion globally by 2028. The article highlights industry reactions, including Coinbase Canada’s CEO noting a transformative impact and mentions major players like Western Union, SWIFT, and Tetra Digital’s $10 million raise to launch a digital Canadian dollar.