Tether Director: EU regulations could shut down many banks

TinTucBitcoinOfficial · 2025-05-03T15:57:59+00:00

Criticism of EU's stablecoin regulations by Tether's CEO highlights concerns over high reserve requirements and potential bank crises. Choosing smaller banks for integration raises systemic risks. Addressing these issues is crucial for EU's financial stability.

TinTucBitcoinOfficial

2025-05-03 15:57:59

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Criticism of Stablecoin Regulation in Europe

Paolo Ardoino, CEO of Tether, expressed his dissatisfaction with the EU’s stablecoin legal framework in an interview. According to him, the new law forces stablecoin companies like Tether to hold a majority of their reserves (up to 60%) in uninsured bank accounts. This creates significant risks for the system.

Banking Crisis in Europe?

Due to the cross-impact of risky loans and new cryptocurrency regulations, Europe may face a wave of bank bankruptcies. Ardoino believes that this regulatory system is designed to help banking institutions in the eurozone enhance liquidity. However, this has led to what he calls “gigantic” systemic risks.

Consequences of Choosing a Small Bank

Because large banks like UBS do not integrate stablecoins into their systems, stablecoin issuers are forced to choose smaller banks. This increases risk and can lead to negative consequences for both the financial industry and the cryptocurrency community.

Final Assessment

The development of the new legal framework seems to be not only an obstacle for Tether but also poses a significant risk to the entire European banking system. These issues need to be addressed to protect both banks and cryptocurrency users.

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