Governments around the world are rethinking what digital money should look like.
Certain countries focus on secure and efficient payment systems, whereas others invest in crypto as a long-term tool for national growth.
Canada is building a tightly regulated framework for stablecoins, positioning them as a safe extension of the existing financial system. Bhutan, by contrast, is leaning into Bitcoin as a strategic asset, using mining and long-term holdings to support economic development.
Canada’s vision of “good money”
The Bank of Canada has made its position on stablecoins clear: only high-quality, fiat-backed stablecoins will be considered acceptable within the country’s financial system. Governor Tiff Macklem has described the goal as ensuring stablecoins function as “good money,” meaning they must be reliable, safe, and compatible with existing payment infrastructure.
For Canadian policymakers, stablecoins are not about disruption for its own sake.
They are viewed as a potential tool to make payments faster, cheaper, and more secure for a population of more than 40 million people. The emphasis is on utility and consumer protection, rather than speculation.
“The goal is to ensure Canadians can leverage the innovation of stablecoins and do so safely,” Macklem said, framing regulation as an enabler rather than a barrier.
That philosophy extends beyond stablecoins themselves. Canada is also rolling out a Real-Time Rail payments system designed to enable instant settlements between businesses and consumers. At the same time, the country is advancing an open banking framework that would allow Canadians to move data and switch banks more easily.
Why Canada walked away from a CBDC
Notably, Canada has stepped back from issuing a retail central bank digital currency. In September 2024, the Bank of Canada shelved plans for a digital Canadian dollar, citing a lack of a compelling case to proceed.
That decision reflects a growing skepticism among some central banks about CBDCs, particularly in countries with well-functioning banking systems. For Canada, the combination of real-time payments, open banking, and regulated private-sector stablecoins appears to offer many of the same benefits without the complexity and political risk of issuing a central bank-backed digital token.
From this perspective, stablecoins are not competitors to sovereign money but extensions of it, provided they meet strict standards.
Lucas Matheson, CEO of Coinbase Canada, has argued that the proposed stablecoin rules could fundamentally change how Canadians interact with money and the internet.
Stablecoins grow as governments take notice
Canada’s stance comes at a time when the stablecoin market is expanding rapidly. The sector is currently valued at more than $300 billion, and estimates from the U.S. Treasury suggest it could grow to $2 trillion by 2028.
That growth has pushed stablecoins from the margins of crypto into mainstream policy discussions. For regulators, the challenge is no longer whether stablecoins matter, but how to integrate them without undermining financial stability.
Canada’s answer is caution, clarity, and oversight.
Bhutan’s alternative path: Bitcoin as a national asset
Bhutan’s approach could not be more different.
The Himalayan kingdom has quietly built one of the largest sovereign Bitcoin holdings in the world, largely through state-backed mining operations powered by hydroelectric energy. Estimates suggest Bhutan holds more than 11,000 Bitcoin, worth close to $1 billion at recent prices.
Rather than treating Bitcoin as a speculative asset, Bhutan’s government has positioned it as a long-term strategic resource.
Officials have emphasized capital preservation, strong governance, and transparency, describing Bitcoin’s value as something that compounds over time.
“The priority will be to preserve the long-term potential of Bitcoin while ensuring development proceeds stably and sustainably,” the government has said, framing its holdings as part of a broader economic vision.
Bitcoin-powered development
Bhutan’s Bitcoin strategy is closely tied to its ambitions for economic development. The Gelephu Mindfulness City, a special administrative region currently under construction, is a flagship project within that vision.
The city is part of Bhutan’s wider Bitcoin Development Pledge, which aims to use digital assets and mining revenues to support long-term growth. The project has already unveiled a masterplan, legal framework, and governance structure, with construction underway.
King Jigme Khesar Namgyel Wangchuck has described the initiative as a shared national project. Most land in Bhutan is state-owned, and the government has likened landowners to shareholders, ensuring that citizens across all regions benefit from development.
“We are therefore developing a new land policy that protects landowners, prevents widening disparities, and ensures shared national prosperity,” he said.
Gelephu Mindfulness City has also embraced crypto-native infrastructure. Merchants and tourism services accept crypto payments, and the region has launched a sovereign-backed digital token linked to physical gold.
Two philosophies, one trend
Canada and Bhutan are responding to the same global forces: digitization, faster payments, and the growing role of crypto assets. Yet their responses reflect fundamentally different philosophies.
Neither approach is universally applicable. Canada’s model suits a large, advanced economy with deep financial markets. Bhutan’s strategy reflects the flexibility of a smaller nation willing to experiment outside conventional frameworks.
What they share is an acknowledgment that money is changing. Whether through regulated stablecoins or sovereign Bitcoin reserves, governments are no longer standing on the sidelines.
Roman Zaika
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