[Digital Today reporter Yoonseo Lee (이윤서)] The European Central Bank and EU central banks called for changing the minimum bank-deposit requirement for stablecoin reserves to a liquidity standard.

Cointelegraph, a blockchain media outlet, reported on Sept. 22 that the European System of Central Banks released a written response containing the view during the review process for the Markets in Crypto-Assets regulation.

The key issue is MiCA’s current approach to managing reserves. The rules require at least 30 percent of stablecoin reserves, and 60 percent for significant stablecoins, to be held as bank deposits. The ECB system argued that the requirement should be removed and replaced with minimum liquidity requirements based on the share of assets that can be converted into cash within 1 business day and within 5 business days.

European central banks viewed large stablecoin deposits as potentially increasing liquidity risks in the banking sector. The ESCB pointed out that the current rules create a direct link between issuers and credit institutions. If large-scale redemptions occur, issuers would need to quickly withdraw bank deposits, which could put banks under liquidity pressure, it said.

As alternatives, it cited instruments such as overnight repurchase agreement transactions and short-term government bonds. Using such assets could help issuers secure reserve liquidity while reducing reliance on bank deposits, it said.

The ESCB said this direction also aligns with a draft from the European Banking Authority. The draft released in 2024 required significant stablecoins to hold at least 40 percent of reserves in assets maturing within 1 business day and 60 percent in assets maturing within 5 business days. For non-significant tokens, thresholds of 20 percent and 30 percent apply, respectively.

It also raised enforcement issues. The ESCB said MiCA introduced an authorisation system in its enforcement process, but crypto firms that do not comply with the rules can still access EU customers.

The proposal is seen as a move by Europe to readjust how it links stablecoins to the banking system. It reflects concern, now at an official review stage, that while reserve safety must be ensured, mandatory bank deposits in a specific form could instead amplify financial-sector instability. As a result, whether reserve regulation shifts from deposit ratios to short-term liquidity is expected to be a key issue in the MiCA review process.