The Bank of Canada has outlined its criteria for classifying stablecoins as "premium money," aiming to ensure they are on par with traditional forms of currency like paper money and bank deposits. Governor Tiff Macklem announced that only high-quality stablecoins pegged to the central bank's currency will be approved under Canada's forthcoming stablecoin regulations, expected in 2026. These stablecoins must be backed by high-quality liquid assets, such as government and treasury bonds, to ensure they can be easily converted into cash. Macklem's announcement follows Canada's 2025 budget report, which mandates stablecoin issuers to maintain adequate reserves, establish redemption policies, and implement comprehensive risk management frameworks. These measures are designed to protect personal and financial data, ensuring the stability and reliability of stablecoins in the Canadian financial system.