Lagarde Says Stablecoins Will Not Strengthen Euro’s Global Role
ECB President Christine Lagarde argues that stablecoins are not the ideal path for enhancing the euro's international influence.Summary
At the Banco de España LatAm Economic Forum, ECB President Christine Lagarde stated that stablecoins are not the best way to strengthen the euro's global role. She argued that the debate often conflates the monetary and technological functions of stablecoins, noting that while euro-denominated stablecoins under MiCA could increase demand for safe assets, they also pose significant risks to financial stability and monetary policy.
Lagarde suggested that instead of attempting to replicate US dollar-backed stablecoins, Europe should focus on building robust tokenized financial infrastructure anchored by central bank money. Key initiatives include the Pontes project for wholesale settlement and the Appia roadmap, which aims to create an interoperable European tokenized finance ecosystem by 2028.
She emphasized that the technological benefits of stablecoins can be achieved through other forms of tokenized money, such as commercial bank deposits or central bank money, within distributed ledger systems. The goal is to harness innovation while avoiding the fragilities associated with private stablecoin issuers.
(Source：Cointelegraph)