The Bank of Canada has urged the creation of a regulatory framework for stablecoins to modernize the country's payment systems and remain competitive globally. Ron Morrow, Executive Director of Payment Supervision and Regulation, highlighted the necessity for both federal and provincial regulators to establish policies ensuring stablecoins are as secure and stable as traditional bank accounts. This initiative aligns with the global trend of increasing interest in stablecoins, particularly following the U.S. GENIUS Act. The Bank of Canada is shifting its focus from developing a central bank digital currency to improving instant payment systems, a move influenced by its collaboration with MIT in 2022. This strategic pivot underscores the importance of integrating stablecoins into the financial ecosystem to maintain Canada's competitive edge in the evolving digital currency landscape.