Canada's government has approved a federal budget that includes a comprehensive stablecoin policy, to be managed by the Bank of Canada. The policy mandates that stablecoin issuers maintain one-to-one reserves, ensure immediate redemption capabilities, and adhere to stringent risk management and cybersecurity standards. Additionally, non-bank issuers are barred from offering interest or yield on stablecoins. Lucas Matheson, CEO of Coinbase Canada, commended the policy as a positive development but urged for an interim solution to expedite the introduction of CAD-denominated stablecoins into the market. This regulatory framework aims to enhance the stability and security of stablecoin operations within Canada.