The collapse of several banks in the US and Switzerland in March, followed by First Republic Bank in May, highlighted the significant risks that banks bear and their potential to affect other industries. Ironically, bank failures have become a critical stability risk to the crypto-asset industry, despite concerns about the risks that the sector could introduce to traditional finance.

To mitigate these risks, e-money institutions should have direct access to central bank accounts, which would create more diverse payment arrangements and shield customers from the credit risk of private banks. The Settlement Finality Directive should be reviewed to level the playing field between banks and non-banks in the payment market, which could be included in the review of the Instant Payments Regulation or the Payment Service Directive.