The world is building new rails for money, but the Canadian dollar isn’t on them.
Digital payments are getting faster, cheaper, and borderless. But the tools Canadians are starting to rely on aren’t backed by our banks or regulated by our government. They’re built abroad, pegged to foreign currencies, and quickly becoming the infrastructure of everyday transactions.
At the heart of that shift is the rise of stablecoins—digital assets designed to hold their value by being tied to traditional currencies like the Euro or U.S. dollar. They provide the decentralized benefits of cryptocurrencies without the volatility that’s been deterring mainstream adoption. And they’re already being used to send remittances, collect payments, and move money across borders instantly and inexpensively.
In February 2025, global stablecoin volumes reached $710 billion, up from $512 billion just a year earlier. Financial giants like PayPal, Visa, and Stripe are integrating stablecoins into their platforms. Shopify and Coinbase announced a partnership last week to allow millions of merchants to accept payment of stablecoins, while Amazon, Walmart and Uber are exploring issuing their own stablecoins. And in countries like Indonesia, dollar-backed stablecoins are increasingly being used for real-time, low-cost money transfers, offering a faster and more accessible alternative to traditional remittance services.
The technology is already here. What’s missing is the policy to support it.
Canadian businesses pay, on average, 2.5 percent in bank fees on international transactions. Consumers sending money to family abroad often lose 6 to 12 percent in remittance fees. Stablecoins cut those costs dramatically. And for small business owners waiting on overseas revenue, they offer faster cash flow and fewer intermediaries.
The technology is already here. What’s missing is the policy to support it. It’s an opportunity for Prime Minister Mark Carney and his new government to make financial innovation a priority by modernizing regulation, supporting homegrown fintech and putting digital assets on the national agenda.
For years, Canadian platforms have called for one clear change: treat stablecoins like what they are—payment tools, not investments. Most leading jurisdictions have moved in this direction. The European Union’s MiCA framework defines stablecoins as digital money. Japan classifies them under its Payment Services Act. Just this week, the U.S. Senate passed the GENIUS Act, which lays out a federal framework for stablecoins.
The next decade will test the entrepreneurial spirit of regulators globally as crypto innovation moves light years beyond traditional finance. Speed will be critical in accelerating how we permit safe, responsible crypto activity.
Take Stablecorp, a Canadian issuer of QCAD–a Canadian-denominated stablecoin. For years, they’ve tried to get approval to bring QCAD to market. The current regulatory regime has brought this process to a crawl, giving foreign stablecoins a substantial headstart.
It’s a question of economic sovereignty. Without real action, Canada will depend on foreign stablecoin infrastructure rather than building a strong domestic ecosystem. Canadians will increasingly turn to US-denominated stablecoins, eroding the Canadian dollar’s relevance in everyday transactions.
To modernize our financial system and keep Canada competitive, the federal government must:
- Define stablecoins as money, not securities. They should be regulated like payment instruments, not like speculative assets.
- Support a Canadian stablecoin. A made-in-Canada option like QCAD would reduce reliance on U.S.-denominated products and strengthen our domestic fintech sector.
- Enforce trust and safety standards. Stablecoin issuers should meet high standards for audits, reserves, and consumer protection—just like other financial institutions.
- Bridge stablecoins with traditional banks. Let them flow freely between wallets and bank accounts to drive broader adoption and utility.
While the risks of regulatory inaction are real, Canada also has an opportunity to lead in stablecoin innovation. We invested in Stablecorp, so we can help a Canadian born company and technology introduce Canadians to a home-grown stablecoin. But we need the government to match that ambition with action.
The choice isn’t just about whether we will lead in the future of digital finance, it’s about avoiding being left behind. The new government can make stablecoin regulation a pillar of its economic strategy, helping Canadians and businesses alike thrive in the new financial era. Canada can’t afford to wait.
Lucas Matheson is the CEO of Coinbase Canada.
Feature image by Dennis Jarvis via Flickr.