🇪🇺 6. Europe is still reviewing its Stablecoin rules
In Europe, the European Central Bank and the central banks of EU countries have proposed changing some of MiCA’s rules on stablecoin reserves.
Current rules require some stablecoin issuers to hold part of their reserves in bank deposits, while the ECB believes this could make banks more vulnerable to withdrawal risks if a Stablecoin comes under pressure.
The European proposal leans more toward requiring a share of reserves to be held in assets that can be quickly converted into cash within 1 to 5 business days. �
In Europe, the European Central Bank and the central banks of EU countries have proposed changing some of MiCA’s rules on stablecoin reserves.
Current rules require some stablecoin issuers to hold part of their reserves in bank deposits, while the ECB believes this could make banks more vulnerable to withdrawal risks if a Stablecoin comes under pressure.
The European proposal leans more toward requiring a share of reserves to be held in assets that can be quickly converted into cash within 1 to 5 business days. �