How stablecoins could modernize Canada’s financial system

Every day, Canadians are losing money without realizing it. Parents sending tuition payments abroad pay around 6% in fees. Small business owners often lose around 2.5% every time they pay an overseas supplier. These costs may seem minor, but over time, they can drain family budgets and business profits.

Speed is also a problem. Traditional payment systems can take days to process cross-border transfers. Reducing this friction could boost productivity and strengthen Canada’s economy at a time when both are desperately needed.

Enter stablecoins: regulated digital currencies that combine the reliability of traditional money with the efficiency of modern technology.

What is a stablecoin?

A stablecoin is a digital currency pegged 1:1 to a traditional currency, such as the Canadian dollar. Unlike Bitcoin or other cryptocurrencies whose values can vary wildly, stablecoins (true to their name) are designed to hold stable value. This makes them practical for everyday or recurring payments.

Think of stablecoins as the digital equivalent of cash: familiar and stable in value, but built on blockchain technology. This allows money to move instantly, securely, and across borders without relying on slow intermediaries.

Why Canada needs faster, smarter payment solutions

Stablecoins could change how Canadians send and receive money. Each year, Canadians send roughly US$8 billion abroad. Families that depend on remittances could save significant amounts annually, while businesses could recoup lost funds from cross-border transactions.

Beyond individual savings, a more efficient payment system strengthens the economy; it supports innovation, improves competitiveness, and makes it easier for Canadian companies to engage in global trade.

Trust through regulation

Global regulators are taking notice. The U.S. is moving forward with the GENIUS Act, and the European Union has its Markets in Crypto-Assets Regulation. Canada is keeping pace with a recently announced national stablecoin framework that, when in place, will ensure stablecoins meet strict standards, similar to traditional financial tools.

These regulations help ensure that stablecoins are backed by high-quality reserves, so each digital dollar equals a real one. Strong regulation builds confidence and allows Canadians to feel more secure using new payment tools. In 2023, Coinbase research showed that 72% of Canadians say regulation is important, and 29% of non-owners say they would purchase crypto if the industry were better regulated.

Canadian dollar-backed stablecoins like QCAD are already in development. With the regulatory framework in place, stablecoins could soon start showing up in everyday life—starting with business payment processors and e-commerce platforms.

Canada’s chance to lead

Canada has long been a hub for innovation, but it has lagged in integrating the advances into practical financial tools. Stablecoins give Canadians a chance to embrace faster, cheaper, and more efficient payments that are better suited to digital life and keep pace with trends in the global financial system.

By modernizing the backbone of our financial system, stablecoins could help families and businesses save money, strengthen productivity, and expand participation in the digital economy. Faster, smarter payments aren’t just convenient—they’re essential for Canada’s economic future.

Read more about stablecoins:

• Stablecoins may offer a faster, cheaper way to send money overseas
• Canadian stablecoins push ahead amid growing regulatory calls
• Consumer-first finance: How USDC Rewards are changing the game

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