Christine Lagarde, president of the European Central Bank, raises concerns about the risks associated with multi-jurisdiction stablecoins and advocates for global regulation.
Lagarde's Warning on Stablecoins
Christine Lagarde highlighted the risks of multi-jurisdiction stablecoins at a conference in Frankfurt on September 3, 2025. She emphasized that these digital assets could threaten EU financial stability and called for global regulatory coordination.
Risks to EU Financial Stability
Lagarde pointed out that stablecoins like USDT and USDC could lead to euro capital outflows, adversely affecting funding for euro-denominated projects. She also noted that liquidity management risks across jurisdictions could create additional threats.
Need for Global Regulation
Lagarde called for stricter global rules for oversight of stablecoins. She emphasized the need for cross-border standardization, which she believes will help mitigate risks for both stable assets and the broader context of DeFi protocols.
Lagarde's comments underscore the need for stricter regulation of stablecoins and international cooperation to ensure the sustainability of financial markets.
