Michaela
The head of payments of the Bank of Canada, Ron Morrow, has urged regulators to establish a clear framework for stablecoins, warning that without action, Canada risks falling behind other nations advancing with similar policies to modernize their payment systems.
Key points:
- Bank of Canada’s Ron Morrow urged regulators to establish a stablecoin framework, warning Canada risks lagging behind other nations moving forward with policies.
- He spotlighted the need for faster, cheaper cross-border payments, noting high remittance costs in Canada compared to the U.S. and U.K.
- Morrow’s remarks followed the U.S. GENIUS Act, which set the stage for wider stablecoin adoption, amplifying pressure on Canada to modernize its regulatory stance.
“More recently, there is growing interest in using stablecoins for cross-border payments to make transactions faster and cheaper. Globally, stablecoin use has been rising in recent years and now accounts for around US$1 trillion in annual transactions,” Morrow said in a speech on Thursday at the Chartered Professional Accountants conference.
Morrow urged federal and provincial regulators to develop a comprehensive policy framework for stablecoins. He emphasized that for these digital assets to be treated as money, they must offer the same level of safety and stability as funds held in a bank account.
Additionally, Morrow noted that governments around the world are moving ahead with regulations for stablecoins and other cryptocurrencies, aiming to balance consumer protection with innovation. He warned that Canada risks falling behind, as many jurisdictions have already introduced or are close to finalizing rules for crypto assets.
The head of payments spotlighted what he described as a “practical Canadian example,” pointing to immigrants who settle in Canada and seek to send money to their families abroad. He noted that the cost of cross-border transfers remains considerably higher in Canada compared with markets such as the United States and the United Kingdom.
“There is a pressing need for faster, cheaper, more transparent and more accessible cross-border payments services. But these services also need to be safe and secure,” Morrow stated.
Morrow’s remarks come at a time of growing momentum for stablecoins, following President Donald Trump’s signing of the GENIUS Act into law. The legislation is seen as a major step toward mainstream adoption of stablecoins, further intensifying global discussions on regulatory frameworks.
In September 2024, the Bank of Canada revealed it was reducing its focus on developing a retail central bank digital currency (CBDC). The decision followed a public consultation in which 42% of respondents expressed a favorable view of a potential CBDC, while 20% said they disliked or strongly opposed the concept.
Looking ahead, Morrow stressed that Canada’s approach to digital assets will need to balance innovation with trust, ensuring that any future system not only keeps pace with global standards but also delivers clear benefits to households and businesses.
Follow on X
Follow on Instagram
Read More
- GENIUS Act Loophole Could Shake Stablecoin Market
- Trump Pushes Clear Crypto Regulations as Senate Preps GENIUS Act Vote
- Citi Warns High-Yield Stablecoins Could Shake Crypto Markets, SHIB Impact
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
