Financial Sector Legislative Review on the Digitalization of Money

A safe and secure financial system is a cornerstone of our economy. However, the digitalization of money, assets, and financial services creates a number of challenges that need to be addressed. Budget 2022 announced that the Government is launching the first phase of a financial sector legislative review that will look at the stability and security of the digitalization of money, including cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs).

Key objectives of the review with respect to the digitalization of money include:

• Mitigating risks to the security of the financial system posed by digital assets.
• Maintaining Canadian sovereignty over Canada’s financial sector and economy.
• Ensuring market confidence by maintaining alignment with the financial sector policy principles of stability, integrity, efficiency, and utility, and addressing risks related to new financial products and services.
• Ensuring consumers and investors benefit from an accessible, inclusive and effective framework, and are supported, empowered and adequately protected when dealing with products and services.
• Providing regulatory clarity to businesses and ensure a level playing field.
• Minimizing opportunities for regulatory arbitrage within Canada and with other major international jurisdictions.