BWC member Andreas Veneris, alongside co-authors Darrell Duffie and Odunayo Olowookere, recently shared a policy note on the effectiveness of Canada’s proposed Stablecoin Act.

While the authors welcome and encourage stablecoin regulation, they argue that as is, the Act is likely to increase regulatory uncertainty, risks over-extending the Bank of Canada’s mandate, and lacks sufficient reserve asset provisions to protect financial stability. They recommend addressing these critical issues prior to finalization to ensure the legislation effectively supports financial stability.

To read the full paper at SSRN, click here.

All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.