Canada is set to introduce regulations for fiat-backed stablecoins as part of its 2025 federal budget. The new framework will require stablecoin issuers to maintain adequate reserves, establish clear redemption policies, and implement comprehensive risk management strategies. To support this initiative, the Bank of Canada will allocate $10 million over two years, with annual costs of $5 million to be covered by the issuers themselves. This move aligns with similar efforts in the U.S. to enhance the security and efficiency of digital payments for over 41 million Canadians.