EU Central Banks Oppose Stablecoin Reserve Deposit Requirements
The European Central Bank (ECB) and other EU central banks have opposed requiring stablecoin issuers to hold a minimum portion of their reserve assets as bank deposits. This proposal, part of the Markets in Crypto-Assets regulations, aims to mitigate risks associated with stablecoins.
The current requirement for major stablecoin issuers is to hold 60% of their reserves as bank deposits. However, the central banks have recommended changing this rule to require a minimum percentage of token reserves be held in assets that mature within one and five working days.
The European System of Central Banks also expressed concerns about enforcing EU-wide crypto regulations. They noted that non-compliant crypto companies continue to access EU customers, raising investor protection concerns.