ECB Pushes for Stablecoin Reserve Reform Amid Banking Concerns
The European Central Bank and national monetary authorities are pushing to reform stablecoin reserve management protocols. They argue that current regulations create vulnerabilities within the banking sector.
Under existing MiCA rules, major stablecoin issuers must maintain a minimum of 60% of their reserves in bank deposits. However, regulators contend that this arrangement establishes an interdependency between stablecoin operators and traditional financial institutions.
The proposed alternative framework would focus on liquidity-based standards rather than fixed deposit percentages. This model would require specific reserve portions to reach maturity within one business day, with additional tranches accessible within five business days.
Tether's Paolo Ardoino previously highlighted comparable concerns in 2024. He pointed out that even if a stablecoin maintains 10 billion euros in backing, lending 90% of those deposits could create severe liquidity mismatches during unexpected redemption surges.