The Missing Middle with Mike Moffatt and Sabrina Maddeaux Canada Is Finally Regulating Stablecoins – Here’s Why It Matters
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Nov 19, 2025 Canada is taking a significant step toward regulating dollar-backed stablecoins, sparking discussions about their benefits over traditional payment methods. The hosts explain how clear regulations could foster competition and innovation in the fintech space. They also highlight Canada's lagging position compared to other G7 nations and warn against relying on foreign regulations. Ultimately, this move could revolutionize digital payments in Canada, providing instant, low-cost transactions while balancing the need for consumer protection.
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Disclosure About The Paper
- Mike Moffatt disclosed the research paper he co-authored recommending stablecoin regulation and noted Coinbase as a supporting partner.
- He also clarified he does not personally hold crypto assets to avoid perceived conflict of interest.
What Stablecoins Actually Do
- Stablecoins are cryptocurrencies pegged to a stable asset, like the US dollar, and are backed by reserves such as government bonds.
- Because they hold value steady, stablecoins function primarily as low-cost, instantaneous payment instruments rather than investment assets.
Use Stablecoins For Low‑Cost Payments
- Use stablecoins to enable instant, cheap cross-border and domestic payments using a phone app.
- Replace costly wires and card fees for remittances and small transfers whenever possible to reduce friction and expense.