Elena Carletti, deputy vice chair of UniCredit, warned at a banking conference on May 28 that European authorities lack the tools to guarantee crypto-linked deposits as US regulators did after the 2023 collapse of Silicon Valley Bank and Signature Bank. While US regulators backstopped all deposits, including those of stablecoin issuers like Circle (which had $3.3 billion at SVB), Europe's deposit insurance covers only up to €100,000 per depositor per bank. Carletti noted that MiCA regulations require stablecoin reserves to be held in bank deposits and government securities, creating a link between stablecoins and banks without a corresponding safety net. She described this as a 'double form of weakness' that could exacerbate stress in a crisis.

Key facts

• UniCredit official warns Europe can't guarantee crypto deposits like US did post-SVB
• Europe deposit insurance limit is €100k; US fully protected SVB depositors in 2023
• MiCA ties stablecoin reserves to banks, creating risk without backup guarantee
• Circle's $3.3B SVB exposure caused USDC depeg before US intervention