UniCredit warns Europe could struggle to contain a crypto-linked banking crisis under MiCA as stablecoin reserve risks outgrow EU deposit protections

MiCA hard-codes a bank-run channel: the ECB says euro EMT issuers must keep 30% of reserves at credit institutions, 60% once significant, while EU deposit insurance still caps at €100k per depositor. USDC survived SVB because U.S. regulators made Circle’s $3.3B deposit whole; an EU issuer at the same wall has to eat the depeg, sell sovereign reserve assets, or lobby for an ad hoc public backstop. That favors bank-led euro rails like the UniCredit/ING/CaixaBank consortium, while DeFi keeps routing through the ~$319B mostly-dollar stablecoin stack.

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