ECB, EU cenbanks seek changes in MiCA’s minimum bank deposit for stablecoins
The ECB and EU central banks want to replace MiCA’s stablecoin bank-deposit requirements with liquidity thresholds, warning that sudden withdrawals could strain lenders.
The European Central Bank (ECB) and EU central banks are proposing to replace MiCA's minimum bank deposit requirements for stablecoins with liquidity thresholds. This change aims to prevent sudden withdrawals from straining banks. The ESCB argues that large stablecoin deposits could create liquidity risks for financial institutions.
Currently, stablecoins must hold at least 30% (40% for significant tokens) of reserves as bank deposits, with significant stablecoins needing 60% (60% for significant tokens) within one or five working days. The ESCB suggests alternative liquidity sources, such as overnight reverse repurchase agreements and short-term sovereign bonds.
They also warn of enforcing MiCA's rules, as non-compliant crypto firms can still serve EU customers.
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