๐ ECB Challenges MiCA Stablecoin Reserve Rule
๐ฆ The European Central Bank (ECB) and EU national central banks have called for changes to a MiCA requirement that major stablecoin issuers keep 60% of reserves in bank deposits.
โ ๏ธ The central banks argue the rule could create risks for the banking system, particularly if stablecoin reserves move in and out of bank deposits quickly.
๐ They have proposed using short-maturity assets that can be converted into cash within 1โ5 working days instead.
๐ The debate highlights the challenge of balancing stablecoin liquidity, financial stability, and crypto-market innovation in the EU.
๐ Could changes to MiCAโs reserve rules reshape how stablecoins operate in Europe?
#MiCA #Stablecoins #ECB #CryptoRegulation
๐ฆ The European Central Bank (ECB) and EU national central banks have called for changes to a MiCA requirement that major stablecoin issuers keep 60% of reserves in bank deposits.
โ ๏ธ The central banks argue the rule could create risks for the banking system, particularly if stablecoin reserves move in and out of bank deposits quickly.
๐ They have proposed using short-maturity assets that can be converted into cash within 1โ5 working days instead.
๐ The debate highlights the challenge of balancing stablecoin liquidity, financial stability, and crypto-market innovation in the EU.
๐ Could changes to MiCAโs reserve rules reshape how stablecoins operate in Europe?
#MiCA #Stablecoins #ECB #CryptoRegulation
