Crypto
ECB calls for overhaul of stablecoin reserve rules, citing liquidity risk
The European Central Bank and EU central banks have called for changing stablecoin reserve rules by replacing minimum bank-deposit requirements with liquidity-based standards. In a response submitted during a review of the EU’s Markets in Crypto-Assets regulation, the Eurosystem said large stablecoin deposits could increase banks’ liquidity risks. It proposed minimum liquidity requirements based on assets cashable within 1 and 5 business days and cited alternatives such as overnight repo and short-term government bills.
