Spring Economic Update includes measures to advance payment modernization

Support for the Real-Time Rail, establishing a Financial Crimes Agency, engagement on tokenized assets among initiatives

The federal government’s Spring Economic Update (SEU), entitled Canada Strong For All, outlines several initiatives designed to modernize payment systems. These measures support national objectives to foster a more robust and competitive economy in Canada.

Key focus areas include:

• Support for the Real-Time Rail (RTR) and for engaging to accelerate development of future RTR capabilities. The SEU states that, “the government remains committed to the future of Canada’s Real-Time Rail (RTR). Launched in 2026, the RTR is a cornerstone of our modernization agenda that will serve as a powerful engine for national productivity and economic growth. This critical national payment infrastructure will be a catalyst for competition, empowering a more dynamic and inclusive financial sector. The government will continue to engage with all relevant stakeholders to ensure the accelerated development of the RTR’s future capabilities. The government is also advancing payment modernisation by strengthening the supervision of payment service providers and expanding their access to national payment systems.”
• Financial Crimes Agency. The SEU recaps progress to date in advancing the National Anti-Fraud Strategy and highlights the introduction of Bill C-29 in the House of Commons on April 27 to establish the Financial Crimes Agency to investigate serious and complex financial crimes, such as money laundering, serious fraud and major capital markets crimes and recover the proceeds of crime, as announced in October 2025.
• Enforcement of Money Services Businesses (MSBs). The SEU proposes enforcement measures related to MSBs including:
  • Introducing new Ministerial Directive powers to safeguard national security and the integrity of the financial system;
  • Expanding FINTRAC’s ability to refuse or revoke registration of MSBs;
  • Preventing the re-registration of non-compliant MSBs;
  • Increasing the number of criminal record checks for MSBs;
  • Enhancing FINTRAC’s understanding of MSB risks by ensuring it has accurate and up-to-date information regarding the commencement of business and services provided by MSBs; and
  • Banning crypto ATMs, shutting down a primary method for scammers to defraud victims and for criminals to place their cash proceeds of crime.
• Further engagement on stablecoin and tokenized assets. The SEU states that the government intends to engage with federally regulated financial institutions to better understand considerations related to their development and potential use of stablecoins, other tokenized assets and whether additional regulatory clarity is needed. The government will conduct targeted discussions with stakeholders and provincial regulators focused on supporting innovation while maintaining financial stability, protecting consumers and preserving regulatory integrity. The next steps will be outlined as work progresses, including in Budget 2026.
• Other measures of interest for the financial sector. The SEU announces the government’s intention to launch a Whole-of-Government Competition Plan to ensure that competition is prioritized throughout the federal government’s policies. The plan will focus on removing inefficient government policies that impede competition arising from regulation, procurement and industrial support. The Minister of Finance and National Revenue will provide further information on this in the coming months.

The SEU announces the government’s intention to implement changes to provide more flexibility for federally regulated financial institutions to make investments that support innovative financial services and benefit the economy as a whole. This includes regulations this spring allowing federally regulated financial institutions to make a broader range of investments to improve financial services, supported by amendments to the Bank Act to ensure the review for national security risks of investments in Canadian businesses by foreign banks and their affiliates is consistent with how other foreign investments in Canada are assessed.

For more information, read the full update and Payments Canada’s published statement in support of the Spring Economic Update.

Payments Canada is proud to host the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, for a strategic dialogue at The Payments Canada SUMMIT. In a session entitled Canada Strong for All, Minister Champagne will join Susan E. Hawkins, President and CEO of Payments Canada, to discuss key pillars of the 2026 Spring Economic Update, enabling national productivity, security and global competitiveness. The discussion will focus on the government’s efforts to combat financial crime and fraud, as well as the importance of payment modernization initiatives as a critical engine for national productivity and economic growth.