%{{tag.tag}} {{articledata.title}} {{moment(articledata.cdate)}} @{{articledata.company.replace(" ","")}} comment The Bank of Canada says it will work with the federal Finance Ministry in Ottawa to finalize draft stablecoin regulations this year. Bank of Canada Governor Tiff Macklem made the announcement during a public address. Macklem said that a stablecoin launched in Canada must behave like cash, not cryptocurrency bets, if it wants a place in the financial system. Canadian stablecoins must be "pegged at a one-to-one ratio to a central bank currency and be backed by high-quality liquid assets so that it can always be converted to cash at par," he said. The central bank governor added that, "We want stablecoins to be good money, like bank notes or money on deposit at banks." The comments come after the Liberal government of Prime Minister Mark Carney pledged last autumn to introduce stablecoin regulations in 2026. Stablecoins are cryptocurrencies whose value is pegged to another asset, typically the U.S. dollar or price of gold. The federal government and central bank in Ottawa are looking to develop a stablecoin that would be pegged 1:1 to the Canadian dollar. Macklem said that high-quality liquid assets are usually government-backed securities such as bonds. He added that conditions for buying and redeeming stablecoins, including timing and "any fees that need to be paid," must be fully disclosed and clear to Canadian consumers and businesses. He also said that it is important for stablecoin regulations to evolve over time and keep pace with the changing technology related to cryptocurrencies. The Bank of Canada will help draft the upcoming regulations as it will ultimately be the central bank that is tasked with regulating a Canadian stablecoin, said Macklem. "The goal is to ensure Canadians can leverage the innovation of stablecoins and do so safely," said the Bank of Canada governor. Bitcoin (CRYPTO: $BTC ) is currently trading at $87,900 U.S., having declined 13% over the past 12 months.