The regulator and several EU central banks want to replace the mandatory thresholds for bank deposits held as reserves. For significant stablecoins, this figure was at least 40% for redemptions within one business day and 60% within five days. For non-significant tokens, the figures were 20% and 30%, respectively. At the same time, the portion redeemable within one day is included in the redemption within five days.
Central banks fear that such deposits could create risks for banks and stablecoin issuers. Similar concerns were previously expressed by Tether CEO Paolo Ardoino. Instead of deposits, officials propose focusing on repo agreements and short-term bonds.