The ECB recommends scrapping the MiCA requirement of a 60% bank reserve for deposits and instead pushing short-term liquid assets. On the stablecoin reserves issue, the hawks are quite aggressive: banks backing deposits are swapped for short-dated Treasuries, and the ability to withstand bank runs looks stronger—but who will take over the risks of liquidity segmentation and discounting?
If this actually comes to pass, the reserve structures of USDC and USDT will have to be reshuffled again, and compliance costs for the European region will keep rising. Don’t rush to pick sides on the pros and cons yet—wait to see how the detailed rules are written.
$USDC $USDT #MiCA #stablecoin
If this actually comes to pass, the reserve structures of USDC and USDT will have to be reshuffled again, and compliance costs for the European region will keep rising. Don’t rush to pick sides on the pros and cons yet—wait to see how the detailed rules are written.
$USDC $USDT #MiCA #stablecoin
