"Canada's stablecoin regulation, limited impact on financial markets"

As the Canadian government pushes to introduce stablecoin regulations, local major bank Scotiabank assessed that the impact of these regulations on the overall financial market would not be large.

According to virtual asset (cryptocurrency) specialist media CoinDesk on the 1st (local time), Scotiabank analyzed in a report that "the regulations the Canadian government is preparing focus on improving payment speed, enhancing efficiency, and building 24-hour payment infrastructure rather than addressing systemic risk."

Canada is preparing a new bill to supervise companies that issue Canadian dollar (CAD)-based stablecoins. It is reported that it will include provider registration requirements and reserve requirements.

Scotiabank said, "the impact of the new regulation on financial stability will be limited," and assessed that "rather, positive effects are expected in terms of modernizing financial infrastructure."

Meanwhile, Canada is regarded as one of the major countries globally that is relatively proactive in organizing a stablecoin regulatory framework.