• Ron Morrow called on Canadian regulators to establish a stablecoin framework to maintain financial system stability.
• The Bank of Canada ended its CBDC project in 2024 to focus on real-time payment infrastructure improvements.
• Global regulatory momentum and U.S. developments are pressuring Canada to act on stablecoin oversight.

Canada’s central bank has urged regulators to act swiftly on stablecoin oversight or risk falling behind international efforts. Ron Morrow, the Bank of Canada’s Executive Director of Payments, called for a formal regulatory framework during a recent speech. Confirmed by a Wu Blockchain post on X, he addressed the need to modernize the financial system while maintaining safety, stability, and public confidence in digital assets.

Canada’s Deputy Governor Ron Morrow emphasized that stablecoins are becoming mainstream in cross-border payments and daily transactions and called for a unified federal regulatory framework. Stablecoins could reduce Canada’s high cross-border remittance fees from 5–10% to under…

— Wu Blockchain (@WuBlockchain) September 19, 2025

Bank Official Warns of Delays in Regulatory Action

Morrow delivered his remarks at the Chartered Professional Accountants conference in Ottawa on Thursday. In his address, he emphasized the urgency of introducing a national policy for stablecoins. He urged both federal and provincial regulators to coordinate efforts.

“Even if you’re on the right track, you’ll get run over if you sit there,” Morrow said during the event. He added that stablecoins must offer the same reliability as funds in a traditional bank account. Without clear regulations, Morrow warned that the risks tied to credit, liquidity, and public trust could grow.

Global Movement Toward Stablecoin Regulation

The Bank of Canada noted that countries worldwide are building regulatory structures for stablecoins and crypto-related products. Morrow stated that multiple jurisdictions have either finalized or are close to finalizing such rules. He said these measures aim to allow consumer participation while providing safeguards against potential financial risks.

This call for action arrives during a period of renewed global interest in stablecoins. Many analysts have referred to the current period as “stablecoin summer,” following regulatory progress in the United States. The recent passage of the GENIUS Act there has fueled market activity and discussions on digital currency adoption.

Canada’s Shift Away from CBDC Plans

The Bank of Canada had previously explored the creation of a central bank digital currency (CBDC). In 2022, the institution partnered with the Massachusetts Institute of Technology to research a digital dollar. However, the project ended in September 2024 as the bank chose to prioritize real-time payments infrastructure instead.

Officials redirected their focus to upgrading payment systems that allow near-instant settlement between users. This decision followed a nationwide consultation in which 42% of Canadians expressed support for a CBDC. Meanwhile, 20% of respondents shared negative views, with some expressing strong opposition.

The discussion about CBDCs is still ongoing in the crypto community of Canada. There have been privacy concerns and government takeover by some of the participants. The opponents claim that CBDCs may bring novel risks and oppose the decentralized financial frameworks. As the use of stablecoins is on the rise across the world, the pressure on Canadian regulators to intervene has increased. The Bank of Canada has elevated the matter into an emergency concern regarding the financial future of the country.