Coin

<ul class="wp-block-list">
 <li>The bank reserve requirements by Mica clearly shows that an increasing portion of the stablecoin reserves will be held on the balance sheets of the bank.</li>
 <li>Many renowned financial institutions are making themselves prepared for the forthcoming MiCA framework.</li>
 <li>Apart from the CEO of Tether, many other industry experts and analysts are worried regarding the MiCA framework’s consequences.&nbsp;</li>
</ul>
The CEO of<a href="https://news.todayq.com/tethers-ceo-ardoino-believes-u-s-crypto-regulations-is-improving/" target="_blank" rel="noopener noreferrer nofollow"> Tether </a>believes that the upcoming regulatory framework of Europe will bring up banking concerns for stablecoin issuers. The MiCA is an extensive regulatory framework within crypto space and is ready to implement on December 30, 2024.&nbsp;
Under the Markets in Crypto-Assets Regulation, the stablecoin issuers will be required to hold a minimum of 60% of reserve assets in the European banks. The CEO of Tether also believes that a systemic risk for stablecoin issuers can be introduced as banks can loan up to 90% of their reserves.&nbsp; What does the CEO say?&nbsp; 
Ardoino has given an interview to a reliable media source in which he stated that:&nbsp;
“If you own 10 billion euros under management then you have to keep around 6 billion euros in cash deposits, which is estimated to be about 60% of the total amount. We know that banks can loan upto 90% of their reserves, so out of that 6 billion euros, around 5.4 billion is given to the people.”
Before this, many remarkable stablecoin issuers have faced the issues associated with banks. Last year, in March the USD Coin of Circle lost its peg and tumbled down to $0.8774. This event happened after the company could not transfer $3.3 billion worth of reserves from Silicon Valley Bank. The bank held around $40 billion on the authority of the stablecoin issuer before being closed down.&nbsp;
The bank reserve requirements by Mica clearly shows that an increasing portion of the stablecoin reserves will be held on the balance sheets of the bank, lifting important suggestions if a bank files for bankruptcy.&nbsp;
The CEO further went on adding that, “You put that 1 million euros in a bank account in the country that guarantees federal deposit up to 100,000 euros. So the 100,000 euros in the bank is secured if it fails and files for bankruptcy, you still get that 100,000 euros and then everything will link with the bankruptcy process as the money you have deposited goes in the balance sheet of the bank.” Market experts worried about the MiCA rules&nbsp; 
Many renowned financial institutions are making themselves prepared for the forthcoming MiCA framework, which adds Societe Generale, a French multinational universal bank and financial services company. The bank has also collaborated with Bitpanda to introcduce a MiCA-biddable stablecoin.&nbsp;
Apart from the CEO ofTether, many other industry experts and analysts are worried regarding the MiCA framework’s consequences. Many experts believe that MiCA will result in a mass departure to the Middle East and lessen the number of European Web3 firms.&nbsp; 
This unification is mainly concerned to the small scale companies having little capital, as per the statement given by the chief executive officer and co-founder of Fideum, Anastasija Plotnikova.&nbsp;

Tether CEO claims MiCA regulations will bring banking concerns

Todayq News

Other articles published on Oct 28, 2024

Trump’s World Liberty eyes stablecoin launch: report

A Florida Crypto Miner Turned $30,000 into $1 Million with Bitcoin—Here’s Why BlockDAG Can Be the...

Rollblock (RBLK) Soars, Leaving AI Cryptos Behind with Online Gambling Potential

Nigeria loses 30% mobile subscribers

UAE’s Venture Capital Invests $1M in TZ APAC for Web3 Games

New Solana Memecoin Lord MAGA Trump (LORDMAGA) Will Skyrocket Over 16,000% Before Exchange Listings

Join our free newsletter for daily crypto updates!