Paolo Ardoino Warns European Banks Will ‘Blow Up’ Due to Stablecoin Regulations

Paolo Ardoino, the chief executive of USDT issuer Tether, believes that many European banks will face significant challenges in the coming years.

In a recent interview, Ardoino criticized European Union stablecoin regulations, arguing that they actually increase systemic risk to the economy.

He explained, “Their regulation was pushing us to keep 60% of our reserves in uninsured cash deposits in Europe. So let’s make this simple math calculation, right?”

Ardoino went on to illustrate how these regulations could lead to a situation where stablecoin issuers may face bankruptcy due to the practices of European banks.

He also warned that the regulations would force stablecoin issuers to rely on smaller, riskier banks, potentially leading to a banking crisis in Europe.

Ardoino concluded, “Mark my words, many banks will blow up in Europe in the next few years.”

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