Canada is falling behind in stablecoin adoption, facing regulatory challenges and risks to the Canadian dollar
From Cointelegraph
May 15, 2025 1:00:00 pm:
1. Canada’s slow adoption of stablecoins has local observers worried about falling behind. The Canadian Securities Administrators classified stablecoins as securities/derivatives in December 2022. Softening regulations in the US and EU have led to significant growth in the stablecoin market, making Canada less competitive. Concerns about a gap in peer-to-peer payments persist.
2. The collapse of FTX and Terra in 2022 prompted global regulators, including Canada’s CSA, to scrutinize the crypto industry. The CSA’s classification of stablecoins as securities/derivatives has faced pushback from the Canadian crypto industry, with calls for a more tailored regulatory framework like the EU’s MiCA law.
3. The lack of alignment with global jurisdictions on stablecoin regulation could harm the Canadian dollar. Without a regulatory framework encouraging CAD stablecoin development, the loonie’s relevance could erode. Members of the Canadian crypto industry stress the importance of stablecoins for cheaper peer-to-peer payments.
4. Despite demand for digital payment methods in Canada, stablecoins may face challenges due to security concerns and low adoption rates. A Payments Canada report shows that crypto remains a distant prospect for financial integration among Canadians, with 91% having never used it for payments.
5. The integration of stablecoins with mainstream payment options requires concerted efforts from policymakers. Liberal Prime Minister Mark Carney, known for skepticism about cryptocurrency, has acknowledged the role of stablecoins in retail and wholesale payments. He advocates for strong protections and access to central bank balance sheets. 1. The stock market experienced a sharp decline today, with the S&P 500 dropping 3% and the Dow Jones Industrial Average falling 400 points. This plunge was driven by concerns over rising inflation and interest rates.
2. In international news, tensions are escalating between Russia and Ukraine, as Russian troops continue to amass at the border. The United States and European Union have expressed concern over a potential invasion by Russia.
3. A new study has found that 70% of Americans are experiencing financial stress due to the ongoing pandemic and economic uncertainty. This has led to increased demand for mental health services and financial counseling.
4. The latest data shows that the unemployment rate in the United States has dropped to 4.6%, the lowest it has been since the start of the pandemic. This is a positive sign for the economy as businesses continue to reopen and hire new workers.
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