Cryptocurrency fans are hoping that Canada’s federal budget on Nov. 4 will contain details on stablecoins.
Stablecoins are cryptocurrencies pegged to an underlying asset such as the U.S. dollar or price of gold.
Several countries, including the U.S., have released guidelines to govern stablecoins, and some analysts warn that Canada runs the risk of falling behind if Ottawa doesn’t act soon.
Crypto proponents are calling on the government of Prime Minister Mark Carney to simplify rules and make it easier to launch Canadian-dollar linked stablecoins.
Those calls have been growing louder as the U.S. cements its dominance in the stablecoin space, with most stablecoins linked to the American dollar.
Crypto enthusiasts warn that a lack of a Canadian dollar pegged stablecoin will lead to more money flowing out of Canada and into the neighbouring U.S.
The Office of the Superintendent of Financial Institutions (OSFI), Canada’s banking regulator, has said that it will be watching the upcoming budget for any news on stablecoins.
The market is potentially huge.
U.S. bank Citigroup (C) recently said that the total pool of stablecoins could grow from $200 billion U.S. today to US$1.9 trillion U.S. by 2030.
While Canada’s federal government has said that it is examining stablecoins and the broader cryptocurrency market, it has not made any announcements related to digital assets.
