A Primer for Regulators, Policymakers and Financial Institutions
Stablecoins are reshaping global finance for enterprises, with over $27 trillion in transaction volume by 2024 and rising adoption by major payment networks. This paper demystifies stablecoins and their operational benefits, reduced transaction costs, instant, low-cost settlements and programmable payments, as well as emerging competitive opportunities in treasury and cross-border flows. Stablecoins also introduce risks including regulatory uncertainty, potential threats to monetary sovereignty, operational vulnerabilities, and challenges for anti-money laundering enforcement, especially in countries like Canada that lack a comprehensive regulatory framework.