ECB Proposes Shift to Short-Term Assets for Stablecoin Reserves

The European Central Banks (ESCB) have recommended replacing MiCA's fixed bank-deposit requirements for some stablecoin issuers. The proposed change would alter how reserves support redemptions in the European Union.

Currently, under Markets in Crypto-Assets Regulation (MiCA), issuers of e-money tokens must keep at least 30% of their reserves with credit institutions. This rises to 60% for issuers classified as significant.

The ESCB's recommended framework would replace these fixed thresholds with minimum reserve percentages in assets maturing within one and five working days.