Department of Finance Canada published a release setting out Budget 2025 measures intended to lower costs by promoting competition, with a major focus on modernising the financial sector. The package includes plans to advance payments modernisation, introduce legislation to complete the Consumer-Driven Banking Act, reinforce competition as a core objective, and accelerate the next phase of consumer-driven banking by 2027. To reduce barriers to switching providers, the government plans to prohibit registered and investment account transfer fees, make it easier to access funds deposited by cheque, and explore ways to improve transparency of cross-border transfer fees charged by banks. Budget 2025 also proposes repealing statutory limits on borrowing and portfolio investments for insurers and other financial institutions and replacing them with more flexible guidance from the Office of the Superintendent of Financial Institutions. On digital assets, the government intends to introduce legislation to regulate fiat-backed stablecoin issuance, including requirements for adequate asset reserves, redemption policies, risk management frameworks, protection of Canadians’ sensitive and personal information, and national security safeguards. Over the coming months, the government plans to engage with experts and stakeholders to inform further actions to support a competitive financial sector.

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