ECB Urges EU to Drop MiCA’s 60% Stablecoin Reserve Mandate

Europe’s central banking authorities—including the European Central Bank alongside the national central banks of all 27 EU member states—are advocating for a significant overhaul of the region’s stablecoin regulations. They contend that the existing 60% reserve mandate under the MiCA framework threatens financial stability. Instead of relying on commercial bank deposits, these institutions are urging that stablecoin issuers be required to shift a greater share of their reserves into short-term, highly liquid assets.