Solana

Tether CEO Paolo Ardoino expressed significant concerns about the European Union’s new Market for Crypto Assets (MiCA) regulation in a recent interview, arguing that it introduces systemic risks rather than enhancing stability. 
Ardoino criticized MiCA, which came into effect on June 30, for its strict restrictions on stablecoin operations within the European Economic Area. The regulation requires that at least 60% of the reserves backing stablecoins be held in EU bank accounts. Ardoino noted that this requirement could exacerbate systemic risk as it puts significant pressure on financial institutions that already operate under a fractional reserve banking system. 
Related News: <a href="https://en.bitcoinsistemi.com/major-vulnerability-in-solana-secretly-fixed-by-developers/" target="_blank" rel="dofollow">Major Vulnerability in Solana Secretly Fixed by Developers</a> 
“Instead of making the system more secure, MiCA creates a huge amount of systemic risk,” Ardoino said, highlighting concerns about the fragility of such a banking system where only a fraction of deposits are easily accessible and potentially leading to bank runs. 
Ardoino noted that cash deposits in the EU are only insured up to $100,000. He argued that this level of insurance is insufficient for large stablecoin issuers like Tether, and that regulation could undermine rather than support the stability of the financial system. 
*This is not investment advice. 
 Continue Reading: <a href="https://en.bitcoinsistemi.com/tether-ceo-paolo-ardoino-reveals-development-he-claims-brings-new-major-systemic-risks-for-the-market/">Tether CEO Paolo Ardoino Reveals Development He Claims Brings New Major Systemic Risks for the Market</a>

Tether CEO Paolo Ardoino Reveals Development He Claims Brings New Major Systemic Risks for the Market

Bitcoin Sistemi EN

Other articles published on Aug 10, 2024

Ripple Warns XRP Community Over Scams Following Major Victory

Get Substantial Rewards with the Best Meme Coin on Presale While Bitget Teams Up with Nansen

BTC Price May Not Make It to $70,000: Bitcoin Death Cross May Trigger 10% Drop This Weekend

Analyst Predicts Bitcoin Surge to $109K by December 2024 Based on Fibonacci Levels, Bullish Indic...

7 Best Altcoins to Buy Now – Forget Bitcoin, These Are the Real Winners

Celsius sues Tether, seeking $3.5B over Bitcoin collateral sell-off

Join our free newsletter for daily crypto updates!