​​🤓 Tether CEO Paolo Ardoino expressed concerns that the EU's 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 EU bank accounts. Ardoino pointed out that financial institutions operate on a fractional reserve basis, so only a portion of deposits are available for withdrawal at any given time.

He also noted that in the EU, cash deposits are only insured up to $100,000.

He cited the 2023 collapse of Silicon Valley Bank, which served as the reserve bank for USDC and caused USDC to lose parity with the dollar, as an example.