ECB and EU central banks urge dropping stablecoin reserve rule
ECB and other EU central banks said stablecoin issuers should not face a rule requiring a minimum share of reserves held as bank deposits, warning it could expose lenders to runs on stablecoins.
Stablecoin issuers should not be required to hold a minimum share of reserve assets as bank deposits, the ECB and other EU central banks said on Tuesday, warning that such a rule could expose lenders to a run on stablecoins and to less stable deposits. The European System of Central Banks made the recommendation in a report on stablecoin policy.