ECB chief Christine Lagarde raises fresh concerns over euro stablecoins
European Central Bank President Christine Lagarde has intensified her opposition to euro-denominated stablecoins, warning that the risks to financial stability and monetary control outweigh any benefit to the euros international role.Christine Lagarde said euro stablecoins pose risks to financial stability and monetary policy transmission in the euro area.The ECB president backed tokenized settlement systems such as Pontes and Appia instead of privately issued euro stablecoins. Speaking Friday at the Banco de Espana LatAm Economic Forum in Spain, Lagarde argued that Europe does not need to replicate the stablecoin models that have emerged around the U.S. dollar. She said the technological benefits tied to blockchain-based payments can instead be delivered through public infrastructure supported by central bank money. “The case for promoting euro-denominated stablecoins is far weaker than it appears,” Lagarde said during the event. Her remarks targeted growing calls within Europe to develop a local stablecoin ecosystem under the EUs Markets in Crypto-Assets Regulation framework. Bundesbank President Joachim Nagel publicly supported that idea earlier this year, while several European banks and payment firms have already started preparing regulated products. Lagarde separated what she described as the monetary role of stablecoins from their technological use. According to the ECB president, reserve-currency expansion tied to privately