News 
Coin Information 
About us 
Customer Service 
European Central Bank (ECB) President Christine Lagarde has pushed back against the growing calls for privately issued euro-pegged stablecoins, arguing that Europe should prioritize a central bank-backed digital infrastructure instead of copying the U.S. stablecoin model. Speaking at the Bank of Spain’s LatAm Economic Forum in Madrid, Lagarde said the rise of dollar-backed stablecoins highlights the need for Europe to strengthen its financial sovereignty through a digital euro and tokenized payment systems anchored by central bank money.
Lagarde stated that the case for euro-denominated stablecoins is “far weaker than it appears,” despite the global stablecoin market being heavily dominated by U.S. dollar-pegged assets such as Tether’s USDT and Circle’s USDC. According to the ECB chief, the technological benefits of stablecoins can already be achieved through public financial infrastructure without exposing the financial system to the risks associated with privately issued digital assets.
Her remarks come shortly after Qivalis, a consortium backed by 12 major European banks including ING, BNP Paribas, BBVA, Danske Bank, and UniCredit, revealed plans to launch a privately issued digital euro later this year. The initiative is aimed at reducing Europe’s dependence on dollar-based stablecoins and preventing what industry leaders describe as “digital dollarization.”
Lagarde warned that stablecoins could trigger financial instability during times of market stress. She pointed to the collapse of Silicon Valley Bank in 2023, when Circle disclosed that part of USDC’s reserves were held at the failed bank, temporarily causing the stablecoin to lose its dollar peg.
The ECB president emphasized that Europe must build a secure public framework for tokenized finance while continuing work on a central bank digital currency (CBDC). Lagarde previously said the ECB aims to introduce a digital euro by 2029, pending regulatory approval from European lawmakers by 2026.
Comment 0