Ron Morrow, head of payments at the Bank of Canada, emphasized the necessity for a stablecoin regulatory framework to modernize the payment system and avoid being outpaced by other nations advancing in this domain. During his speech at a conference in Ottawa, he highlighted that for stablecoins to be recognized as legitimate money, they must achieve safety and stability akin to traditional bank balances. Morrow urged both federal and provincial regulators to take action, noting that many regions globally are establishing regulatory structures for cryptocurrencies to enhance consumer protection and promote the benefits of these digital assets. His comments coincided with a period dubbed 'stablecoin summer,' marking a revival of interest and adoption in stablecoins, particularly following favorable developments in the United States. Previously, the Bank of Canada had explored Central Bank Digital Currencies (CBDCs) in collaboration with MIT but has since shifted focus toward developing a real-time payment system, facing mixed sentiments from the public regarding the idea of CBDCs.

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