Today the European Banking Authority published five consultations relating to the Markets in Crypto-Assets Regulation (MiCAR). Two of them relate to stablecoin reserves. The main MiCAR regulation already specifies high proportions of assets must be held at commercial banks.
The consultations use the lingo of bank compliance experts. Hence, we’ve attempted to make this a plain English version, but we don’t guarantee its accuracy.
Smaller stablecoins must hold at least 30% of their reserves at commercial banks. In contrast, significant stablecoins must keep 60% or more at banks. Both of these requirements are already specified by MiCAR. A significant stablecoin is one with at least €5 billion in reserves or more than ten million users.
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