Thanks, Laure.
There are Canadian dollar-anchored stablecoins, just to use an example. It's a digital token that's anchored one for one with the Canadian dollar. In various discussions we've had with provincial securities regulators, they've expressed a concern, and they've taken a position that these Canadian dollar-anchored stablecoins, to use an example, are securities and should be regulated as securities.
The practical use and the intent is to use these tokens like currency, like the Canadian dollar. The question becomes whether it is appropriate to regulate these tokens under the regime of securities legislation and policy, when no one's really buying these Canadian dollar-anchored stablecoins with the expectation that they're going to increase in value. It's not like a traditional investment.
Slotting them into securities law has been a little awkward for at least one of my clients. It's caused a lot of legal fees and discussion back and forth with exactly how the stable token is going to be sold. The effect is that it's going to be very hard for clients to actually do business and to offer these types of products, because the securities law just doesn't quite fit. It's probably more appropriate that they be regulated like a currency, and perhaps be regulated under a different regulator like the Bank of Canada or another regulator, because they're more akin to a currency than a security. That's one example, the fiat-backed stablecoin.