19.09.2025 02:04

Here is a re-written version of the news article, incorporating diverse sentence structures and focusing on the core details:

The Bank of Canada is expressing concerns that the nation risks lagging behind in the global evolution of payment systems. Through official channels, the bank is advocating for the rapid development of regulations concerning stablecoins. These digital assets, pegged to established currencies such as the Canadian dollar, are seen as vital to keeping pace with worldwide financial advancements.

Speaking at a conference in Ottawa this week, Ron Morrow, the central bank's executive director overseeing payments, suggested that nationwide regulations might become necessary for stablecoins. Highlighting the increasing momentum observed not only in the United States but also on a global scale, he stressed that proactive measures are crucial to remain competitive. The current landscape, characterized by the growing prevalence of digital payments, coupled with the efficiency and cost-effectiveness of stablecoins in everyday transactions, underpins this urgency.

Morrow underscored a critical point: the requirement that stablecoins, if intended to function as actual currency, must possess the same degree of safety and reliability as conventional bank account balances. This emphasis on safeguarding financial stability forms the foundation of the Bank of Canada's position.

The onus is now on Canadian regulators, as per the recommendations of Morrow and other proponents. The Office of the Superintendent of Financial Institutions (OSFI) has also signaled its intention to establish a regulatory structure for stablecoins, including provisions for issuer licensing, redemption rights, and reserve requirements. Furthermore, OSFI has expressed its willingness to explore digital assets, provided they are easily traceable.

There is apprehension that a fragmented regulatory approach, where provinces adopt divergent rules, could hinder innovation. Consequently, calls for collaboration between federal and provincial regulatory bodies to establish unified standards are growing.

The recent rise in the prominence of stablecoins is partially attributed to a period within the industry, commonly referred to as "stablecoin summer." The surge in their usage stems from factors such as cross-border transactions, e-commerce, and the demand for instant peer-to-peer payment solutions. Stablecoins offer users advantages like reduced transaction costs and faster processing speeds compared to conventional banking systems. However, the Bank of Canada has also raised…