The post Canada’s 2025 Federal Budget Reveals Plans to Regulate Stablecoins  appeared first on Coinpedia Fintech News

Canada is taking a major step to regulate stablecoins, a sector that has recently seen massive demand from institutions. This comes after the U

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Crypto advocacy group Stand With Crypto Canada praised the move, calling it a “significant move toward faster, cheaper, and borderless payments.”

Stablecoin Demand Surges

The total stablecoin market cap has surpassed $300 billion, and is currently at $312 billion, which reflects the growing demand. The institutional demand is also rising as major companies are jumping on board.

Global payment giants like Western Union, SWIFT, MoneyGram, and Zelle have either started using stablecoin solutions or announced plans to do so in the past few months.

In Canada, Tetra Digital is emerging as one of the leading players in the stablecoin space. It raised $10 million to create a digital Canadian dollar, backed by investors like Shopify, Wealthsimple, and the National Bank of Canada.

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FAQs

When will Canada’s stablecoin rules take effect?

While no exact date is set, the framework is part of Canada’s 2025 Federal Budget and could roll out over the next two years.

Who will oversee stablecoin regulation in Canada?

The Bank of Canada will manage oversight, ensuring issuers meet reserve, security, and compliance standards for consumer protection.

How will Canada’s stablecoin law impact users and businesses?

The rules aim to make digital payments faster, safer, and more affordable, boosting confidence for both consumers and institutional users.

Why is stablecoin regulation important for Canada’s economy?

It helps protect users, supports innovation, and positions Canada as a trusted hub for digital finance in a growing global stablecoin market.