The Executive Director of the Bank of Canada calls for the establishment of a stablecoin regulatory framework to avoid falling behind other countries.

According to a report by Cointelegraph on September 19, Ron Morrow, the Executive Director of Payments, Regulation and Supervision at the Central Bank of Canada, spoke at the Chartered Professional Accountants conference in Ottawa, calling for federal and provincial regulators to establish a policy framework for stablecoins.

Morrow stated: “Even if you are on the right path, if you just sit there and do nothing, you will be run over.” He emphasized that for stablecoins to be considered as currency, they need to be as safe and stable as a bank account balance. Morrow pointed out that governments around the world are advancing regulations on stablecoins and other cryptocurrencies so that consumers can reap their benefits and be protected from credit and liquidity risks.

It is worth noting that the Central Bank of Canada collaborated with the Massachusetts Institute of Technology to develop a Central Bank Digital Currency (CBDC) in 2022, but abandoned the plan in September 2024 to focus on other priorities such as developing real-time payment systems.