European Central Bank President Christine Lagarde highlighted the risks associated with multi-jurisdictional stablecoins in her statement on September 3, 2025, calling for enhanced international regulation.
About ECB's Warning
Christine Lagarde expressed concern over multi-jurisdictional stablecoins threatening the financial guarantees of the European Union. She noted regulatory shortcomings arising when stablecoins operate across borders, particularly with non-regulated issuers, could create significant issues for the EU's financial system.
Potential Impact on Euro Liquidity
Lagarde emphasized that stablecoin operations could lead to large-scale euro outflows and liquidity challenges. Stablecoins backed by major currencies like the US dollar face heightened scrutiny, and their impact on market dynamics necessitates attention from regulators.
Conclusions and Next Steps
Stablecoin issuers and EU regulatory bodies are closely monitoring potential policy changes. Discussions among developers and operators indicate a need for strategic adjustments amid possible new regulations. There could be shifts in DeFi protocols utilizing stablecoins as a result of the current situation.
Lagarde's warning regarding stablecoin risks raises important questions about the future of digital assets within the European financial system and highlights the need for collaborative global regulation.
