DeXe (dexe) 
Tether CEO Paolo Ardoino has expressed concerns regarding the recent MiCA regulation, which he believes puts the EU’s banking systems and the use of stablecoins at a “systemic risk.”
In a recent interview, Ardoino discussed the implications of the MiCA regulation, effective from June 30. This new law mandates that stablecoin issuers in the EU must maintain at least 60% of their reserves in EU-based bank accounts.
Ardoino pointed out that this regulation could pose challenges since EU cash deposits exceeding €100,000 are not insured—a relatively insufficient amount for stablecoin companies like Tether. He noted that these limitations could lead to issues similar to those faced during the Silicon Valley Bank collapse in 2023, where Tether had $3.3 billion in cash deposits.
“Silicon Valley Bank went belly up. We all know about that,” said Tether CEO Paolo Ardoino.
He warned that such requirements might jeopardize stablecoins and highlight vulnerabilities within the banking sector. Ardoino explained that financial institutions operate on a fractional reserve banking system, which means only a small portion of deposited funds are available for immediate withdrawal. In the event of a surge in withdrawal requests, banks could face runs, potentially leading to financial instability.
Ardoino criticized the MiCA regulation, arguing that it introduces significant systemic risks rather than enhancing security.
When asked about U.S. presidential nominee Donald Trump’s proposal to create a strategic Bitcoin reserve for the U.S., Ardoino expressed strong support. He noted that central banks, especially in Asia, have been increasing their gold reserves, and highlighted the advantages of Bitcoin over gold. According to Ardoino, Bitcoin is governed by objective mathematical principles, not human trust, making it a valuable asset for national reserves.
He believes that if the U.S. started acquiring and holding Bitcoin as a reserve asset, it would set a significant precedent and likely inspire other countries to follow suit. Ardoino also mentioned that Tether holds a portion of its reserves and profits in Bitcoin, suggesting that a U.S. strategic Bitcoin reserve would validate Tether’s approach.
Other crypto experts, however, have argued against a Bitcoin reserve due to its volatility.
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