Lagarde Sees Euro-Stablecoin Risks for Banking, Monetary Policy

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European Central Bank President Christine Lagarde stated that euro-denominated stablecoins pose significant risks to financial stability and monetary policy, outweighing potential benefits like lower financing costs or increased global appeal for the euro. She argued that stablecoins are not an efficient way to strengthen the euro's international standing and emphasized the ECB's focus on integrated capital markets and a safe asset base as better solutions for the euro's global role.