In remarks in Montréal, Bank of Canada Governor Tiff Macklem set out how the Bank intends to maintain trust in Canadian money while supporting innovation in payments. He highlighted that the Bank began supervising retail payments in 2025 and said it will take on two additional responsibilities in 2026, regulating stablecoins and implementing consumer-driven banking. Retail payments supervision is focused on payment service providers (PSPs) and their management of operational risks and safeguarding of end-user funds, with close to 1,600 PSPs either registered or in the pipeline. On infrastructure, the Bank is working with Payments Canada on Real-Time Rail to enable instant, 24-7 clearing and settlement and, over time, faster cross-border payments and direct PSP access. For stablecoins, he pointed to draft legislation that would create a Stablecoins Act regulating issuers and amend retail payments legislation to cover stablecoin payments, with core expectations including a one-to-one peg to a central bank currency, backing by high-quality liquid assets, full disclosure of redemption timing and fees, and operational resilience. Consumer-driven banking was framed as requiring supervision of participants and high technology standards to protect customer data and minimize fraud. Macklem also previewed bank note updates, including a new vertical CAD 20 note in early 2027 with enhanced anti-counterfeiting features, featuring King Charles III and the Canadian National Vimy Memorial, followed by a CAD 5 note featuring Terry Fox, with work under way on CAD 50 and CAD 100 designs. The Bank said it will work with the Department of Finance Canada to support the drafting of stablecoin regulations in 2026, and it confirmed it will review its monetary policy framework ahead of the 2026 renewal while not reconsidering the 2% inflation target. Macklem also noted that Governing Council has maintained the policy interest rate at 2.25% and expects CPI inflation to remain near 2%.
Bank of Canada 2025-12-16
Bank of Canada outlines 2026 stablecoin regulation and consumer-driven banking supervision plans
Bank of Canada Governor Tiff Macklem plans to maintain trust in Canadian money while fostering payment innovation, including supervising retail payments and regulating stablecoins by 2026. The Bank is collaborating with Payments Canada on Real-Time Rail for instant clearing and settlement and is drafting a Stablecoins Act to regulate issuers. Macklem also announced updates to banknotes and confirmed the policy interest rate remains at 2.25%, with CPI inflation expected to stay near 2%.