A reserve rule faces a rethink

European central banks are questioning a central part of the EU stablecoin framework. In their September 22 response to a MiCA consultation, the European System of Central Banks recommended removing mandatory minimum bank-deposit allocations for stablecoin reserves.

The existing requirements call for 30% of reserves to be held in bank deposits, rising to 60% for major issuers. The central banks instead favour requirements linked to assets maturing within short periods.

Why bank deposits can transmit stress

The concern is about how reserves behave during a rush to redeem tokens. A stablecoin issuer facing heavy withdrawals may need to pull a large deposit from a bank quickly.

That deposit can be less predictable than a broad base of ordinary customer savings. Concentrating reserves in lenders may therefore connect a run in digital assets with funding pressure in the banking system.

A proposal, not an immediate rule change

The consultation response does not itself amend MiCA. Issuers still have to comply with the rules that apply while policymakers consider changes.

The debate highlights a difficult balance: reserve assets must support redemptions, but their location can create risks elsewhere. A backing claim alone does not explain how cash will become available in a stressed market.

The focus shifts to reserve quality

For stablecoin users, the useful questions remain practical. What assets back the token, how liquid are they and what contractual redemption rights exist?

The central banks’ intervention makes reserve design a live policy issue. It does not mean every bank deposit is unsafe or that a replacement framework has already been agreed.