ECB’s Lagarde Pushes Back on Euro Stablecoins, Warns of ‘Structural Weaknesses’
ECB President Christine Lagarde said euro stablecoins are “not an efficient way” to boost the euros global role, warning their risks outweigh short-term gains.She flagged two “material” risks: financial instability from sudden redemptions and weaker monetary policy transmission if deposits shift out of banks.Industry leaders pushed back, warning Europe risks dollar dominance and sending a negative signal to private investors building euro stablecoins. ECB President Christine Lagarde pushed back Friday on calls for euro stablecoins, saying the instrument is “not an efficient way” to strengthen the euros international role—and that Europe should stop trying to copy the U.S. playbook. Speaking at the Banco de España LatAm Economic Forum in Roda de Bará, Spain, Lagarde acknowledged that the global market, now worth over $317 billion and nearly 98% denominated in U.S. dollars, has forced a policy reckoning across advanced economies. The GENIUS Act, advancing through the U.S. Congress, is touted by the Trump administration as a tool to ensure “the continued global dominance of the U.S. dollar” and to cement demand for US Treasuries, Lagarde noted in her remarks. “The terms of the debate have shifted,” she said. “It is no longer about whether stablecoins should exist, but whether jurisdictions can afford to be without









