«Even if you are on the right track, you will be crushed if you stay there.» This statement by Ron Morrow, executive director of payments, surveillance and supervision at the Banque du Canada, sounds like a warning for Canada. Indeed, while the country has abandoned its MNBC projects, the Stablecoins are experiencing a real boom. In this context, the Bank of Canada calls for the establishment of a regulatory framework for these stable cryptocurrencies.
The key points of this article:
The Bank of Canada has abandoned its central bank digital currency projects, but the Stablecoins are experiencing extraordinary boom. Ron Morrow urgently urged a regulatory framework for Stablecoins, highlighting their potential in the modernization of the Canadian payment system.
A regulatory framework for stablecoins
During a conference, Ron Morrow stressed the urgency for Canada to modernize its payment system. According to him, the stablecoins could play a key role in this modernization. However, for them to be considered as money, they must be as safe and stable as the balance of a bank account.
«At the end of the day, so that the stablecoins are considered to be money, they must be as safe and stable as the balance of your bank account (…) Governments strive to regulate stablecoins and other cryptocurrencies so that consumers can harvest the benefits and be protected against credit and liquidity risks. In fact, many jurisdictions in the world have already, or will soon have a regulatory framework for cryptocurrencies. »»
Morrow also mentioned that many countries had already set up or were developing regulations for cryptocurrencies. He urged Canadian federal and provincial regulators to do the same so as not to late.
Abandonment of the Canadian MNBC
In 2022, the Bank of Canada had collaborated with MIT to develop a digital central bank currency (MNBC). However, in September 2024, the bank decided to abandon this project. She preferred to focus on other priorities, such as the development of a real -time payment system. This decision was made after a Canadian investigation into their perception of an MNBC. The results showed that only 42 % of respondents were in favor of an MNBC, while 20 % were opposed to the idea. Ron Morrow's speech reflects an increasing awareness of the importance of stablecoins in the modern financial system. While Canada has put aside its MNBC project, it now seems ready to embrace stablecoins, provided that a solid regulatory framework is set up.