Tether CEO Paolo Ardoino Warns ‘Many’ European Banks Will Blow Up in Next Few Years – Here’s Why
By: bitcoin ethereum news|2025/05/06 23:00:04
0
Share
Paolo Ardoino, the chief executive of USDT issuer Tether, thinks many European banks will “blow up” in the coming years. In a new interview with Pascal Hügli, Ardoino blasts European Union stablecoin regulations, arguing that they increase systemic risk to the economy rather than doing the opposite. “So remember, 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? Imagine that you have €10 billion in market cap of your stablecoin in Europe. 60% needs to be kept in uninsured cash deposits in a bank. Uninsured cash deposit means that bank insurance in Europe is only €100,000... Now, of those €6 billion, you know that European banks – well, all the banks – are doing fractional reserves, so they can lend out 90% of it to people that want to buy a house, that want to start a business, or to public works or whatever. So €5.4 billion will be lent out by the bank and €600 million will be kept... So imagine that you have a redemption of 20%, so you need to pay out €2 billion. You go to the bank and you tell the bank, ‘Well, I want €2 billion.’ And the bank says, ‘Well, I only have €600 million.’ As a stablecoin issuer, you go bankrupt. Not because of you, but because of the bank. So the bank goes bankrupt and you go bankrupt.” Ardoino says the regulations are designed to bring liquidity to the banks. He claims that the big financial institutions in Europe won’t bank stablecoins, so stablecoin issuers following EU regulations will be forced to rely on smaller banks with more risk. According to Ardoino, the setup will lead to a banking crisis in Europe. “Mark my words, as happened with Silicon Valley Bank, that, by the way, almost killed them in 2023, they will face the same issues. Banks will blow up in the next years also in Europe... Many banks will blow up in Europe in the next few years.” Follow us on X, Facebook and Telegram Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Generated Image: Midjourney Source: https://dailyhodl.com/2025/05/06/tether-ceo-paolo-ardoino-warns-many-european-banks-will-blow-up-in-next-few-years-heres-why/
You may also like

The Aave civil war escalates, Morpho quietly doubles: Is the lending throne about to change hands?
Wall Street asset management giant Apollo Global Management invested $160 million in Morpho.

Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market
In the dataset, transfers are no longer simply labeled as pure "transaction volume," but are classified as different on-chain activities. This is the difference between "just knowing that $100 trillion has been transferred" and "understanding why it was transferred."

Stripe Annual Letter: New cognitive density is extremely high, especially the 5-level model of "AI + Payments"
Every trend here is affecting everyone's future survival.

Sam Altman's Twenty-Four Hours: The Pentagon said "no" twice, but only one was serious
In Silicon Valley, Altman's sub-12-hour move has a name. It's not called backstabbing, it's called timing.

The US-Iran Conflict Spreads to the Crypto Space: What to Expect in the Market on Monday
The most important industry in the crypto world, only 300 kilometers away from the missile's impact point

Lily Liu, the chair of the Solana Foundation, shouted "Don't waste time on crypto," is the crypto industry really dead?
The interest of the younger generation is shifting from cryptocurrency to the field of artificial intelligence, which coincides with the current phenomenon in the cryptocurrency industry.

The little deer live by the water and grass
Mining companies have never been the most devout believers in Bitcoin. Under the pressures of halving compressing profits, financial reports showing revenue growth without profit increase, and coin prices falling below mining costs, the industry is collectively de-risking.

The world belongs to Chinese people who speak English
The world is vast, and only playing half of it is truly a loss.

Why Stop at 126K? Michael Saylor Breaks Down BTC Stagnation and Retail Absence Truth
Bitcoin is digital capital, and I will spend a thousand hours explaining it to you. Eventually, you will understand, but you will still have to endure a 45% crash.

Virtuals Protocol's inaugural Titan project: ROBO aims to give a wallet to a robot
This is a key step in Virtuals expanding the Agent Economy into the Embodied AI and Robotics field.

Stablecoin Latest Report: Actual Distribution and Circulation Much More Notable Than Supply
The Truth about Stablecoin Circulation Speed, Concentration, and Structure After Doubling the Supply

Paradigm's New Arithmetic: When Crypto Can't Hold 12.7 Billion, AI Becomes the Answer
It took Paradigm three years to emerge from the ruins of FTX.

Wintermute Founder: In the Lost Cryptocurrency Market, What Can We Still Do?
This is more like a manifesto, discussing "the very reason we are here."

$1.3 Billion Debt: BitDeer Faces Tough Battle
Wu Jihan is waiting for AI's money to catch up with the speed of debt.

Anthropic's IPO Gamble: At the Most Unlikely Moment, It Chose to Say No
In the AI Era, what is the most valuable thing?

Paradigm's Math Problem: $12.7 Billion, Too Big for a Single Crypto Fund
Emerging from the ruins of FTX, Paradigm took three years

Ethereum Unveils Scaling Roadmap, What's Different This Time?
Short-term improvements to execution efficiency through the Gas mechanism optimization and block validation parallelization, and long-term scalability through ZK-EVM and blobs data architecture.

Anthropic Ban Wave, OpenAI $100 Billion Funding Controversy: What Is the Overseas Crypto Community Talking About Today?
What Have Foreigners Been Most Interested in Over the Last 24 Hours?
The Aave civil war escalates, Morpho quietly doubles: Is the lending throne about to change hands?
Wall Street asset management giant Apollo Global Management invested $160 million in Morpho.
Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market
In the dataset, transfers are no longer simply labeled as pure "transaction volume," but are classified as different on-chain activities. This is the difference between "just knowing that $100 trillion has been transferred" and "understanding why it was transferred."
Stripe Annual Letter: New cognitive density is extremely high, especially the 5-level model of "AI + Payments"
Every trend here is affecting everyone's future survival.
Sam Altman's Twenty-Four Hours: The Pentagon said "no" twice, but only one was serious
In Silicon Valley, Altman's sub-12-hour move has a name. It's not called backstabbing, it's called timing.
The US-Iran Conflict Spreads to the Crypto Space: What to Expect in the Market on Monday
The most important industry in the crypto world, only 300 kilometers away from the missile's impact point
Lily Liu, the chair of the Solana Foundation, shouted "Don't waste time on crypto," is the crypto industry really dead?
The interest of the younger generation is shifting from cryptocurrency to the field of artificial intelligence, which coincides with the current phenomenon in the cryptocurrency industry.