ECB Seeks to Ditch MiCA Reserve Rule for Stablecoin Issuers

The European Central Bank and all 27 EU national central banks are pushing for changes to Europe's stablecoin rules. They argue that the current MiCA framework's 60% reserve requirement could put banks at risk.

The ECB wants issuers to move more reserves into short-term, highly liquid assets instead of commercial bank deposits. The main concern is that stablecoin reserves can move quickly when crypto markets fall, and if issuers suddenly face large redemption requests, they may need to withdraw a large amount of money from commercial banks.

This could make bank deposits less stable and increase liquidity risks for lenders, according to the ECB.