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Lagarde Warns Europe on Stablecoins, Pushes Digital Euro

Lagarde Warns Europe on Stablecoins, Pushes Digital Euro

Published 2 weeks, 3 days ago
Description

European Central Bank President Christine Lagarde warns against adopting the U.S. stablecoin model for a digital euro, advocating for tokenized settlement systems backed by central bank money instead. She highlights the risks of privately issued euro-pegged stablecoins, such as the Silicon Valley Bank crash, and emphasizes the need to maintain Europes monetary sovereignty. The ECB plans to launch a true central bank digital currency by 2029, with pilots starting in 2027, to avoid the pitfalls of private stablecoins.

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