European Central Banks Urge MiCA Stablecoin Reserve Change
The ECB and other EU central banks recommended changing a MiCA rule that requires major stablecoin issuers to hold 60% of reserves in bank deposits. They warned of liquidity risks to banks and proposed a minimum share in short-maturity assets instead. This is a recommendation, not an adopted law.
PARADIGM INSIGHTS:
Moving a stablecoin reserve from deposits to short-maturity assets moves risk; it does not erase it. A useful MiCA review asks who can verify reserves, who bears loss during redemption and which forum can give a holder a remedy across borders. The central banks' proposal is a policy choice to test, not a rule already changed.
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