ECB, EU central banks oppose stablecoin bank deposit rule
FILE PHOTO: European Union flags flutter outside the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 19, 2026. REUTERS/Jana Rodenbusch/File Photo
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
PARIS, Sept 22 : Stablecoin issuers should not be required to hold a minimum proportion of their reserve assets as bank deposits because they could leave lenders exposed to changes in the stablecoin market and less sticky deposits, the ECB and other EU central banks said on Tuesday.
The European System of Central Banks (ESCB) – a body made up of the ECB and the 27 national central banks of EU countries – made the comments in a response to a consultation on the MiCA regulations, a set of EU-wide crypto rules which came into force last year.
Instead of the current requirement for major stablecoin issuers to hold 60 per cent of their reserves as bank deposits, the central banks recommended changing MiCA to instead require a minimum percentage of the token reserves which should be held in assets which mature within one and five working days.
The central banks also said that European regulators are facing “material challenges” in enforcing the bloc’s crypto regulations, as non-compliant crypto companies continue to have access to EU customers, creating investor protection concerns.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
