EU Central Banks Oppose Bank Deposit Requirements for Stablecoin Reserves

The European Central Bank and other European Union central banks have spoken out against requiring stablecoin issuers to hold a minimum portion of their reserve assets as bank deposits.

In response to a consultation on the Markets in Crypto-Assets regulations, the European System of Central Banks recommended changing MiCA to require a minimum percentage of token reserves be held in assets that mature within one and five working days.

This would replace the current requirement for major stablecoin issuers to hold 60% of their reserves as bank deposits.

The central banks also warned that such requirements could expose lenders to changes in the stablecoin market and less stable deposits.