fintech

Canada’s federal government has unveiled its 2025 national budget, and this time it’s more than just numbers — it’s a major step toward a new era of digital finance.

The plan introduces a nationwide framework for fiat-backed stablecoins, creating clear rules for how digital assets pegged to national currencies must operate.
Under the proposal, all stablecoin issuers will be required to maintain transparent reserves, offer redemption guarantees, and operate under federal supervision — all to protect consumers and safeguard market stability.

Bank of Canada allocates $10 million for the new regulatory framework
According to the budget, the Bank of Canada will allocate $10 million over 2026–2027 to implement the stablecoin framework, with an additional $5 million per year funded through fees collected from companies regulated under the Retail Payment Activities Act.
The goal is to build a modern, secure, and transparent stablecoin system that positions Canada alongside major jurisdictions such as the U.S. and the EU, which are already advancing similar legislation.
The bill will also include provisions to enhance Canadians’ financial privacy and strengthen national security for digital transactions.

Inspired by the U.S. Genius Act
Government officials confirmed that the proposal draws inspiration from the U.S. Genius Act, a landmark piece of legislation promoting innovation and trust in the stablecoin sector.
However, some details remain unclear — such as which agency will have primary oversight and how stablecoins will be defined legally.

Unlike in the U.S., where stablecoins are treated as payment instruments regulated at the federal level, Canada’s legal system views digital assets like Bitcoin and stablecoins as securities regulated at the provincial level.
This dual classification has long caused confusion among issuers and consumers — something the new legislation aims to resolve.
“Governments are moving quickly to regulate stablecoins so consumers can benefit from them while being protected from credit and liquidity risks,” said Ron Morrow, Executive Director for Payments at the Bank of Canada, during a September conference in Ottawa.

Experts warn of isolation if Canada diverges from global standards
While fintech companies have largely welcomed the proposal, experts warn that Canada risks isolating itself if its rules stray too far from international frameworks.
“If Canada’s approach to stablecoins isn’t harmonized with U.S. and global standards, Canadians will end up using foreign-issued stablecoins,” warned Mohammed Muraj, a partner at a leading Canadian blockchain and fintech law firm.

“That could undermine both monetary policy and national financial sovereignty.”

A market ready for the digital economy
Analysts say Canada’s market is ripe for digital currency integration.

Domestic firms are already expanding blockchain-based services:
🔹 Shopify has launched stablecoin payment options through Coinbase and Stripe, enabling merchants to accept blockchain-based payments directly.

🔹 Calgary-based Tetra Digital raised $10 million to develop a Canadian dollar-backed stablecoin slated for 2026.

🔹 Another Calgary startup, Loon, secured $3 million in seed funding and released its own stablecoin earlier this year.
Canada was also one of the first countries in the world to introduce anti–money laundering rules for crypto back in 2014, setting a global precedent for compliance.

A signal to the world: Canada wants trust and innovation
According to Carolyn Wilkins, former Senior Deputy Governor of the Bank of Canada, it’s time to establish a legal foundation that fosters trust, safety, and competitiveness in modern digital payments.
She noted that the U.S. Genius Act “has given wind to the sails of payment innovation” — and that Canada must now follow suit:
“This is the moment for Canada to build an environment that supports the development of a digital Canadian dollar and strengthens its position in the global economy.”

Summary
Canada’s 2025 federal budget sends a clear message: stability, innovation, and digital transformation.

The country aims to create a secure and regulated stablecoin market that attracts investors while protecting users.
If the new framework aligns with international standards, Canada could become a North American leader in digital finance.

If not, it risks falling behind in a world where money itself is becoming software.


#Canada , #Stablecoins , #crypto , #Regulation , #fintech

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Ripple has made headlines with a huge $500 million strategic investment, lifting its market valuation to a remarkable $40 billion 🔥. This bold step underscores the strong trust and confidence investors have in Ripple’s vision for the future of finance.
The company plans to use this investment to expand its global payment network, particularly across Asia, the Middle East, and Latin America. Ripple aims to make international transactions faster, cheaper, and more transparent, while boosting the real-world utility of $XRP
Experts say this milestone could solidify Ripple’s position as a global fintech leader, paving the way for greater institutional adoption and broader integration of blockchain in financial systems. 🌎💡
The message is clear: Ripple is building the future of payments, and $XRP is at the heart of it.
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Mastercard is reportedly in talks to acquire Zero Hash for $1.5–$2 billion — and this isn’t just another crypto acquisition.
It could mark the start of a 24/7 stablecoin settlement era that redefines how traditional finance operates.

💡 What’s Changing?
Today, card payments still settle through batch windows, weekday cutoffs and delayed reconciliation.
But in the world of stablecoins, time zones and “business hours” don’t exist.

If Mastercard integrates this infrastructure into its network, banks and merchants could settle transactions instantly — anytime, any day, even on weekends and holidays.

📦 Why Zero Hash (and BVNK) Matter
Both companies offer turnkey infrastructure for regulated custody, conversions and compliance — the heavy lifting behind stablecoin settlement.
By acquiring them, Mastercard could plug in ready-to-use crypto rails, accelerating its shift from pilot to full production.
💸 The Impact Across the Ecosystem
• Banks can reduce prefunding and overdraft exposure.
• Merchants can move and reconcile funds in real time.
• Cross-border payments become faster, cheaper and more transparent.
• But… compliance, AML checks, liquidity management and risk controls will remain major hurdles.

⚠️ The Roadblocks
24/7 settlement won’t happen overnight.
Traditional fiat ramps, liquidity gaps, smart contract risks and continuous AML screening all add friction.
Expect a hybrid phase where onchain and offchain systems coexist until regulations, tools and market liquidity catch up.

🔍 What to Watch Next
✅ Completion of the Zero Hash acquisition
✅ Outcome of the BVNK talks
✅ Expansion of USDC/EURC settlement to new regions
✅ Mastercard’s Multi-Token Network and Crypto Credential going live with real banks

If these pieces align, settlement will follow business needs — not the clock. ⏰➡️∞

💭 Your Take:
Do you think 24/7 stablecoin settlement will truly replace “banking hours,” or will compliance and regulation keep things slow?
#Fintech #Crypto #Blockchain #Mastercard #Web3 $BNB $XRP $BNB