ECB and EU central banks want MiCA's 30%-60% StablecoinStablecoin refers to s are blockchain-based digital currencies pegged to the value of an underlying asset. The term belongs in Level 7 because it helps connect macro conditions,...Read More bank-deposit rule replaced with LiquidityDefinition Liquidity describes how easily buying and selling can occur without requiring a large change in price. A liquid market generally has active participation...Read More requirements based on fast-maturing assets.
The European Central BankCentral Bank refers to the public monetary authority responsible for managing a currency system and implementing monetary policy. The term belongs in Level 7 because it helps co...Read More and the EU's national central banks recommended removing MiCA rules requiring stablecoin issuers to keep at least 30% of reserves in bank deposits, rising to 60% for major issuers. In their consultation response, the central banks argued that stablecoin deposits could make bank funding less stable during periods of stress. They instead proposed minimum holdings of assets maturing within one to five working days and reiterated concerns about multi-issuance stablecoin structures and enforcement against crypto firms operating without required EU licences.
