Budget plan for stablecoin rules to usher in Canada’s ‘digital dollar era,’ advocates say

The federal government said the Bank of Canada would spend $10-million over two years to administer the legislation, starting in 2026-27.

Stablecoin companies and advocates are hailing Ottawa’s new federal framework for the digital currency as a milestone in legitimizing the asset and the start of “the digital dollar era” in Canada.

The Carney government promised in Tuesday’s budget to introduce federal legislation regulating the issuance of stablecoins, which proponents say gives credibility to the currency as a real form of payment, protects consumers and businesses, and is key to spurring innovation in the financial system.

The plan to regulate stablecoins, a crypto asset pegged one-to-one to a fiat currency or commodity, follows warnings from the Bank of Canada and industry