The Bank of Canada outlined its next steps in delivering Consumer-Driven Banking, alongside a new mandate to oversee fiat-backed stablecoins, marking a significant moment for the country’s financial system at Open Banking Expo Canada 2026 on March 5.
In the Keynote Fireside on the Main Stage, Ron Morrow, executive director of payments, supervision and oversight at the Bank of Canada, told attendees that consultation with the industry will be “a vital component” for delivering Consumer-Driven Banking to Canadians.
On March 26, Bill C-15 received Royal Assent, enabling the Canadian Government to implement Budget 2025 and complete the Consumer-Driven Banking legislative framework, which the central bank has been given responsibility for supervising.
At the heart of this is the creation of a secure, accredited ecosystem for financial service providers, underpinned by rules on security, consent, and liability. These foundations, developed in collaboration with the Department of Finance, will shape how participants enter and operate within the regime, Morrow explained.
Crucially, the Bank is prioritising getting the framework right over moving too quickly.
“We don’t want to slow down the process, but we do want to ensure that Consumer-Driven Banking delivers on its promise of greater choice and lower cost for Canadians. Perhaps most importantly, we need to take the time to ensure the system is safe, stable, and trustworthy,” Morrow said.
Industry collaboration will define the rollout
Drawing on lessons from its retail payments supervision work, the Bank plans to engage closely with stakeholders to refine everything from the accreditation model to the trust framework itself.
Morrow explained: “Consultation with the industry will be a vital component for delivering Consumer-Driven Banking to Canadians.
“This includes ensuring the industry has the appropriate amount of lead time to align with the regulations and related requirements for entering and participating into the Consumer-Driven Banking framework.”
Morrow confirmed that timelines remain under development, with the Bank currently mapping out the full delivery plan before committing to a “go-live” date.
Stablecoins: building a ‘made-in-Canada’ framework
Alongside Consumer-Driven Banking, the Bank is preparing to support the regulation of a fiat-backed stablecoin, reflecting growing global momentum around tokenised payments.
Asked about the timing, Morrow told attendees: “About two-thirds of jurisdictions globally have in place legislation for regulating stablecoins, or other forms of tokenized payments. Here in Canada, the view from our colleagues at the Department of Finance and the government at large is, it was important for Canada to have a similar framework.
“We don’t want to be left behind. Assuming there’s some growth in tokenized payments, we want to be able to have made-in-Canada solutions,” he added.
The focus will be on regulating issuers and ensuring stablecoins are backed by safe, liquid, and properly segregated assets.
Key use cases include cross-border payments and B2B transactions, according to Morrow, where stablecoins could reduce cost and friction compared to traditional correspondent banking systems.
A converging financial ecosystem
Morrow explained: “All three of those initiatives – the Real-Time Rail, stablecoins, and Open Banking – are all grounded in the same broad underlying policy objective, which is to create a more efficient, innovative, competitive financial system here in Canada.”
For Morrow, the launch of Open Banking will only be one measure of its success, while the other is adoption.
“I think [success] looks like Canadians taking advantage of what Open Banking has to offer – that they have a much richer and broader array of services that they can avail themselves of,” Morrow said. “They’re getting a wider range of financial advice, and better financial planning.”
Further reading: Competition Bureau: Open Banking must unlock ‘innovation-driven’ competition in Canada
