UniCredit Bank of Italy warns: Europe may be difficult to contain the crypto banking crisis under MiCA rules

Comparing news, according to CoinDesk, Italy's UniCredit Bank executive Elena Carletti warned that Europe may not be able to cope with financial shocks related to crypto companies and banks. Carletti notes that when Silicon Valley Bank and Signature Bank went bankrupt in 2023, the US decided to protect all deposits, including funds held by stablecoin issuers, a measure that helped stabilize the crypto market.

Carletti said Europe cannot easily adopt the same measures. EU MiCA rules require stablecoin issuers to store reserve assets in liquid assets such as bank deposits and government securities, making them more closely tied to traditional banks. However, European deposit guarantee systems generally only protect up to €100,000 per bank per depositor. If large stablecoin reserve accounts are under pressure, this limit may not absorb the impact. According to Carletti, this creates a “double weakness.”