[The Bank of Canada Will Only Approve High-Quality Stablecoins Pegged to Central Bank Currency] BlockBeats News, December 17: The Bank of Canada has made it clear that under its new stablecoin regulations expected to be introduced in 2026, it will only approve 'high-quality' stablecoins pegged to central bank currency to ensure they qualify as 'sound money.' 'We want stablecoins to be sound money, like banknotes or bank deposits,' Governor Tiff Macklem said on Tuesday at the Chamber of Commerce in Montreal. Macklem stated that stablecoins must maintain a 1:1 peg with central bank currency and be backed by 'high-quality liquid assets,' which should be easily convertible to cash, typically including treasury bills and government bonds. This statement follows the release of Canada's lengthy *2025 Budget Report* in early November. The report highlighted that stablecoin issuers will be required to hold sufficient reserves, establish redemption policies, and implement various risk management frameworks, including measures to protect personal and financial data. 'The goal is to ensure Canadians can safely leverage the innovative benefits of stablecoins,' Macklem said.