The Bank of Canada is working with the Department of Finance to develop a new comprehensive framework for the oversight of payment systems that articulates this vision. It needs to be flexible, forward looking, and risk-based to meet public policy objectives, even as payment systems evolve and new trends emerge. The challenge is to find the balance between ensuring safety and promoting efficiency.
The oversight framework must instill confidence in the payments system and foster innovation and competition to meet user needs, support economic growth and promote financial stability. New players that are not currently subject to the same comprehensive regulatory oversight as traditional incumbents must be brought into the framework.