ECB opposes bank deposit requirements for stablecoin reserves

The ECB and EU central banks are opposing the current bank deposit requirements for stablecoin reserves established under MiCA. These institutions are seeking to replace the existing minimum bank deposit rules with specific liquidity thresholds. This push for regulatory changes stems from warnings that sudden, large-scale withdrawals of stablecoin reserves could place significant strain on lenders, potentially destabilizing the financial system if the current MiCA framework remains unchanged regarding how these reserves are held.