Bank of Canada wants to make stablecoins ‘good money,’ Macklem says
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Bank of Canada governor Tiff Macklem Photo by Peter J. Thompson/National PostArticle contentBank of Canada governor Tiff Macklem said he wants to make stablecoins “good money” like bank deposits and notes, as the central bank is set to take the helm on regulating the digital currency.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“The proposed Stablecoins Act will regulate stablecoin issuers, and the retail payments legislation will be amended so that it also applies to stablecoin payments,” he said, during an end-of-year speech in front of the Chamber of Commerce of Metropolitan Montreal. “The goal is to ensure Canadians can leverage the innovation of stablecoins and do so safely.”Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentThe act was mentioned in the federal budget last month and the central bank intends to work closely with Finance Canada to support the drafting of regulations next year.
The United States was the first to create a legislative framework for stablecoins under the U.S. Genius Act, and Macklem said other jurisdictions are looking to bring the benefits of cryptocurrencies to their own economies, without the risk of fraud or instability.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentMacklem also touched on the growing responsibilities the central bank has taken on to ensure the regulation of new forms of banking and payments, including overseeing the retail payments system, pushing for consumer-driven banking and modernizing Canada’s national payments infrastructure.Article content“With our role as the provider of cash and the supervisor of payment systems, and our mandate to control inflation, these new responsibilities make the bank a one-stop shop for money you can trust,” said the governor.Article contentLooking to next year, Macklem said the reconfiguration of trade and the restructuring of Canada’s economy will continue to dominate. He added that ongoing structural changes, like global trade disruptions and the rise of artificial intelligence, have the potential to add inflationary pressures.Article contentArticle content“Protectionist U.S. trade policy and high tariffs are adding costs and creating economic volatility,” said Macklem, during an end-of-year speech. “More generally, ongoing structural changes are turning into headwinds that have the potential to disrupt supply and add inflationary pressures.”Article contentRead More Bank of Canada expected to hold interest rate steady through 2026 as inflation cools John Ruffolo: The coming stablecoin storm, and why Canada can’t afford to snooze Article contentMacklem also discussed the central bank’s plans for its mandate renewal in 2026. Every five years, the Bank of Canada and the federal government renew the central bank’s monetary policy framework.Article content“We want to be sure the way we use our flexible inflation-targeting framework gives us the best chance of keeping inflation low and stable in a more shock-prone world,” said Macklem. “We want to provide the best information to Canadians about how we’re doing that.”Article content• Email: jgowling@postmedia.comArticle contentTrending The Federal Reserve’s rate cut was a clear signal to investors Investor Posthaste: A metric that tells how Canadians are really doing is improving for the first time in years News Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance McKinsey plots thousands of layoffs in consulting slowdown Work Bank of Canada expected to hold interest rate steady through 2026 as inflation cools Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.
The Federal Reserve’s rate cut was a clear signal to investors Investor Posthaste: A metric that tells how Canadians are really doing is improving for the first time in years News Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance McKinsey plots thousands of layoffs in consulting slowdown Work Bank of Canada expected to hold interest rate steady through 2026 as inflation cools Economy