Alex U
@yourbrother
Tether CEO Paolo Ardoino expressed concern that EU MiCA regulation could pose a threat to stablecoins and the banking system According to MiCA, at least 60% of stablecoin reserves must be held in bank accounts in the EU. Ardoino pointed out that financial institutions operate on a fractional reserve basis, so only a portion of deposits are available for withdrawal at any time. He also noted that in the EU, cash deposits are insured only up to $100 thousand. As an example, he cited the collapse of Silicon Valley Bank in 2023, which served as a reserve bank for USDC and due to which USDC lost parity with the dollar.
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