EBA Has Proposed Guidelines for Stablecoin Issuers to Ensure Quick Redemption, Prevent Bank Runs

The European Banking Authority (EBA) has proposed new guidelines for stablecoin issuers, including minimum capital and liquidity requirements. The guidelines aim to ensure that stablecoins can be quickly redeemed, even during turbulent market conditions, to prevent bank runs and contagion. The proposed liquidity stress testing will help identify any shortcomings in liquidity and allow the EBA to strengthen the requirements if necessary.