Canada’s reputation for a stable, prudent financial system is globally recognized. In a volatile world, it is our bedrock. Now, in the digital age, this foundation of trust gives us a unique opportunity to build the world’s most secure and reliable digital currency, extending our financial leadership into the next century.
At the heart of this transformation is a new financial tool: the stablecoin. It combines the trust and stability of the Canadian dollar with the speed and reach of the internet. Unlike other cryptocurrencies, each stablecoin is a digital token backed one-for-one by a real dollar held in reserve at a regulated financial institution.
This creates something fundamentally new — a programmable and interoperable payment rail that can be used globally for instant payments, automated commerce and the building of a more efficient foundation for a digital economy, one that keeps our own economy competitive and our monetary sovereignty intact.
The most important feature of a stablecoin is utility. For a trade-reliant nation like Canada, which exported approximately $1 trillion in goods and services last year, that utility is critical.
Today, sending money across borders is an exercise in friction. Businesses often pay $30–$80 for a wire transfer, lose another 3%–5% on currency conversion and then wait up to five days for funds to settle. A regulated, Canadian-dollar-backed stablecoin collapses that process into seconds, for a fraction of the cost, offering a powerful competitive advantage for every Canadian business operating internationally.
Furthermore, it extends the stability of the Canadian dollar globally. For people in countries with volatile economies — where currency collapses of over 99% are a painful reality — access to a trusted digital currency can be a lifeline. This isn’t just a benefit for them, it’s a projection of Canadian financial leadership on the world stage.
The imperative is timely and deeply strategic. These new digital currency rails are being built now, and they are overwhelmingly American. The stablecoin market has seen explosive growth, with the total circulating supply surging from approximately US$20 billion to over US$185 billion in just the last five years.
This phenomenal growth has been almost entirely captured by the U.S. Over 98% of these digital dollars are pegged to the U.S. dollar. This translates to immense economic activity, with the network settling over US$12 trillion in transactions during 2024 alone.
This American-led paradigm has already established a foothold in Canada. The Financial Consumer Agency of Canada reports that nearly one in 10 Canadians have owned stablecoins. Every time they use a U.S.-dollar stablecoin, we are effectively outsourcing our financial sovereignty.
While these tokens often travel on decentralized global networks, the asset itself is not decentralized — the companies, the reserves and the laws that govern them are all American. We are ceding control of our digital trade to foreign companies and regulators.
Direct competition
The consequences of inaction are not theoretical. Major global exchanges are already offering Canadians attractive yields to convert their savings into U.S.-dollar stablecoins. This is direct competition to our domestic banking system.
The Canadian dollars held in our banks are the bedrock of our economy, funding the mortgages and business loans that drive growth. Every dollar that migrates to a foreign digital platform and currency is a dollar that cannot be put to work here at home.
True digital sovereignty, in this context, doesn’t mean building a walled-off Canadian blockchain. On the contrary, the power of this technology lies in its global, interoperable nature. Sovereignty means ensuring that a digital Canadian dollar is unequivocally backed one-for-one by real Canadian dollars or short-term Government of Canada bonds, held in segregated custody at a regulated Canadian financial institution, under Canadian law. The technology can be global; the governance and the assets providing its value must be domestic.
Unlocking the true potential of a Canadian stablecoin requires a dual commitment. The role of government is not to build the product, but to clear the runway for innovation, a goal recently endorsed by the Bank of Canada. It sees regulation as a way to build confidence in a competitive framework.
This means acting now on three fronts:
- Regulatory clarity: Classify fully-backed stablecoins as payment instruments under a modern payments framework, not as securities.
- Prudential standards: Mandate the gold standard for reserves, one-for-one backing in cash and short-term Government of Canada securities held in segregated, bankruptcy-remote accounts at regulated institutions.
- Lead by example: Accelerate adoption by accepting stablecoins for taxes and fees and using them for government disbursements.
With this framework in place, the call to action shifts to the private sector. Unlike a state-run central bank digital currency, our approach must be to compete and innovate with the speed the market demands. A market-based approach allows multiple solutions to compete and lets users decide on the best. It is our collective responsibility — banks, fintechs, investors and merchants — to build a superior digital dollar with use-cases that win on user experience and tangible benefits, making it the clear choice.
We must be builders and stewards of this new financial architecture, not simply adopters of a blueprint designed by others. The loonie has always been a symbol of Canadian stability. Let’s make its digital successor a global symbol of trust and innovation. This is our moment to build the global standard and define the future of finance.
Daniel Ordibehesht is the senior vice-president of strategy, corporate development, & ventures at ATB Financial. ATB Financial is a strategic investor and financial institution partner in a Canadian-dollar stablecoin initiative led by Tetra Digital Group. ATB provides specialized commercial banking solutions to a range of companies operating in the digital asset space.