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Economic Viewpoint

Stablecoins: Everything You Were Afraid to Ask

October 20, 2025
Mirza Shaheryar Baig, Foreign Exchange Strategist • Oskar Stone, Analyst

Stablecoins allow the transfer of value over digital networks faster and cheaper than traditional payment systems. 

The right conditions need to be met before CAD stablecoins are widely adopted. Canada is lagging other countries, but this could change once a comprehensive regulatory framework is in place.  

The impact of stablecoins on Canada’s financial system will be manageable, in our view. Confidence runs on private issuers cannot be ruled out. But robust oversight and provisioning can mitigate these risks. We believe concerns about traditional banks being hollowed out  are overstated.

Money that goes into stablecoins will be pulled from other sources like money market funds. Thus, net demand for Canadian T‑bills will not change much.  

Building a thriving CAD-backed stablecoin ecosystem is a worthwhile goal—but it does not guarantee monetary sovereignty. The US is actively promoting the internationalization of USD-backed stablecoins. Canadian users may gravitate toward them if homegrown variants do not deliver the same benefits.

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Stablecoins: Everything You Were Afraid to Ask (PDF, 479 KB)
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.