ECB’s Lagarde flags euro-denominated stablecoins as financial stability risk, diverging from Bundesbank stance
The Block
ECB President Christine Lagarde warns that euro-denominated stablecoins threaten financial stability and monetary policy, distancing herself from recent support by the Bundesbank.Summary
ECB President Christine Lagarde has expressed strong skepticism regarding euro-denominated stablecoins, arguing that their potential risks to financial stability and monetary policy transmission outweigh any perceived benefits. Her comments contrast with the position held by Bundesbank President Joachim Nagel, who previously expressed support for a European stablecoin ecosystem. Lagarde emphasized that Europe should focus on public infrastructure anchored in central bank money rather than replicating private instruments. She highlighted concerns such as bank runs, deposit substitution, and fragmentation, and instead advocated for the ECB's own tokenized settlement projects like Pontes and Appia.
(Source：The Block)