Europe’s central banks want to scrap this stablecoin reserve safeguard
European central banks recommended replacing MiCA’s mandatory commercial-bank deposit shares for stablecoin reserves with minimum holdings of assets maturing within one and five working days. The proposal would reduce a rule requiring 30% of reserves in bank deposits, or 60% for significant tokens, but would need legislative approval; existing requirements remain in force. The recommendation reflects concerns that bank deposits link stablecoin redemptions to banks’ ability to return funds and could transmit stress in either direction. Britain’s proposed systemic sterling stablecoin regime excludes commercial-bank backing, instead allowing short-term government debt and non-interest-bearing central-bank deposits, with planned liquidity protections. The approaches differ, but both focus on ensuring reserves can meet redemptions under stress.
