The ECB just raised interest rates. For anyone holding a euro stablecoin, the return remains exactly the same: zero.
On Thursday, the European Central Bank raised all three key rates by 25 basis points. From September 16, its deposit facility rate — what banks can earn by parking money overnight with the Eurosystem — rises to 2.50%.
The reason is inflation. The ECB now expects headline inflation of 3.0% this year, 2.5% in 2027 and 2.1% in 2028, with the Middle East conflict keeping pressure on energy prices.
“Inflation is set to remain well above target for an extended period,” the ECB said.
BeInCrypto reported in July that economists expected the September increase.
MiCA Creates a Strange Split
Under MiCA, euro stablecoins such as Circle’s EURC are e-money tokens. Article 50 says issuers and crypto platforms cannot pay holders interest. The rule even covers benefits or discounts tied to how long someone holds the token.
“Any remuneration or any other benefit related to the length of time” a token is held can count as interest, MiCA says.
Meanwhile, issuers must safeguard the money backing those tokens. At least 30% must remain in bank deposits. The rest can sit in secure, highly liquid, low-risk assets.
Those reserves can generate income. The holder cannot receive interest simply for keeping the token.
Circle has operated EURC under a French e-money licence since July 2024. Its market value is now roughly $466 million.
The gap is not new. When MiCA’s stablecoin rules took effect in June 2024, the ECB deposit rate was 3.75%. Europe’s licensed crypto market has operated under the interest ban ever since.
Thursday’s move takes the gap between the ECB deposit rate and the permitted holder yield back to 250 basis points.
The ECB says it is “not pre-committing to a particular rate path.” Euro stablecoin holders have less uncertainty. Whatever happens next, the token itself still pays zero.
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