Canada’s central bank is pushing for clearer rules around stablecoins, warning that the country risks falling behind if it doesn’t act soon. The call to action came from Ron Morrow, the Bank of Canada’s executive director of payments, during a speech in Ottawa this week.
He didn’t mince words. Morrow pointed out that even if you’re headed in the right direction, staying still isn’t an option. “You’ll get run over if you sit there,” he remarked. It was a blunt way of saying that other countries are already moving ahead with regulatory frameworks, and Canada shouldn’t delay.
What Makes a Stablecoin “Money”?
Morrow argued that for stablecoins to be widely accepted as money, they need to be just as safe and reliable as traditional bank balances. That means people have to trust them completely. He emphasized that governments worldwide are stepping in to regulate crypto assets—not to stifle innovation, but to protect consumers from risks like liquidity crunches or credit issues.
“Many jurisdictions either have, or will soon have, a regulatory framework for crypto assets,” he noted. It’s a trend that’s hard to ignore.
The Shift Away from a Digital Canadian Dollar
Not long ago, the Bank of Canada was exploring a central bank digital currency, or CBDC. It even partnered with MIT on a research project back in 2022. But those plans were shelved just a couple of months ago, in September.
Instead, the bank says it’s focusing on other projects, like building a real-time payment system. Public opinion might have played a role—a survey showed that while 42% of Canadians viewed a CBDC positively, about 20% strongly disliked the idea. CBDCs remain controversial, especially among those who worry about privacy and increased government oversight.
Why Now for Stablecoins?
Morrow’s comments arrive during what some are calling a “stablecoin summer,” fueled partly by new regulations in the United States like the GENIUS Act. Stablecoins pegged to the U.S. dollar continue to dominate the market, and other countries, including Australia, are also adjusting policies to accommodate them.
It feels like a pivotal moment. The Bank of Canada seems to be acknowledging that stablecoins aren’t going away—and that it’s better to shape their use than to resist or ignore them. Whether provincial and federal regulators agree, and how quickly they might act, is still an open question.
But one thing’s clear: the conversation around what counts as money—and who gets to control it—is changing faster than many expected.
