ECB and EU Central Banks Urge Removal of Bank Deposit Requirement for Stablecoin Issuers

The European System of Central Banks (ESCB) has recommended that stablecoin issuers under MiCA not be required to hold a minimum share of reserves as bank deposits, arguing this could increase run risk and deposit instability. This marks a regulatory stance shift that could lower compliance costs for issuers and reduce bank exposure to stablecoin reserves. The final MiCA technical standards remain pending, so the impact on stablecoin market structure is uncertain.