Scotiabank stated that Canada's push for the issuance of stablecoins will boost payments but will not reshape the market.

A new analysis from Scotiabank, shared via CoinDesk, provides a balanced assessment of Canada's developing stablecoin regulatory framework. The bank believes that the new regulations are a positive step, but the impact will primarily focus on the payments sector rather than the entire financial system.

According to the proposed Stablecoin Act in Bill C-15, non-bank issuers must register with the Bank of Canada, maintain a 1:1 fiat reserve backed by highly liquid assets, and hold reserves at an approved custodian. The Bank of Canada also emphasizes that the issuance of stablecoins is a payment activity, indicating a shift towards operational oversight rather than investment management.

At the same time, OSFI is expanding the scope of permitted crypto exposure and recognizing USDC as compliant, while domestic projects like the CAD-pegged stablecoin by Tetra Digital Group continue to gain momentum. Scotiabank concludes that stablecoins will help accelerate cross-border transactions and reduce costs, but are unlikely to create structural changes to Canada's capital markets or monetary policy.