ECB recommends removing MiCA bank deposit quotas for stablecoins
CIE News ·
Based on reporting by Forbes; not yet independently confirmed.
According to Forbes, the European Central Bank recommended dropping MiCA bank deposit quotas after USDC was classified as significant, raising its commercial reserve rule to 60%.
The European Central Bank and EU national central banks have formally recommended removing minimum commercial bank deposit quotas under MiCA, Forbes reported. The initiative follows the European Banking Authority classifying Circle's USD Coin (USDC) as a significant e-money token, which increased Circle's minimum reserve requirement held in commercial bank deposits from 30% to 60%. Central bankers stated that concentrated commercial accounts create liquidity contagion risks during redemptions, proposing standards based on reserves maturing within one to five business days instead. Circle remains bound to the 60% requirement while the proposal is considered.
Key facts
- ECB advises removing MiCA quotas
- USDC tagged significant token
- Circle reserve rule raised to 60%
- Short-term reserves proposed