- ПECB President Christine Lagarde believes stablecoins are harmful to the EU’s financial stability.
- Meanwhile, European companies are already beginning to issue their own stablecoins, the exchange rate of which is backed by the euro.
On Friday, ECB President Christine Lagarde spoke out against euro-denominated stablecoins, arguing that they pose risks to financial stability and the monetary policy transmission mechanism that outweigh their benefits.
Speaking at the Bank of Spain’s Latin American Economic Forum, Lagarde said there was no need to create Europe’s own stablecoin ecosystem.
The case for promoting euro-denominated stablecoins is much weaker than it appears, said official
In her opinion, the monetary function of stablecoins can be realized with the help of a state infrastructure based on central bank money.
She cited a March 2026 ECB working paper that warned that widespread adoption of stablecoins would pose serious risks to eurozone banks and the institution’s monetary sovereignty, particularly if pegged to foreign currencies.
As a reminder, back in September 2025, Lagarde called for stricter oversight of non-EU stablecoin issuers and demanded stricter enforcement of MiCAR rules. Even earlier, she stated that stablecoins pose a greater privacy risk than the digital euro.
Meanwhile, a consortium of 12 major European lenders plans to commercially launch a MiCA-regulated, euro-backed stablecoin in the second half of 2026.
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