The Bank of Canada releases stablecoin standards, requiring a 1:1 peg to fiat currency

According to TechFlow, on December 17, Cointelegraph reported that Bank of Canada Governor Tiff Macklem announced at the Montreal Chamber of Commerce that Canada will only approve stablecoins that are pegged 1:1 to central bank money and backed by high-quality liquid assets. These assets mainly include treasury bills and government bonds, ensuring that stablecoins can be easily redeemed for cash.

Macklem stated: "We want stablecoins to be good money, just like cash or bank deposits." This regulation is at the core of Canada's stablecoin regulatory framework, which is planned to be implemented in 2026. The framework will also require issuers to hold sufficient reserves, establish redemption policies, and implement risk management measures.