ECB President Questions Whether Europe Really Needs Euro Stablecoins
European Central Bank President Christine Lagarde used a speech in Spain on Thursday to deliver one of her clearest warnings yet about the rise of stablecoins, arguing that policymakers are increasingly mistaking the instrument for the outcome and failing to separate the role stablecoins play in payments from the broader question of what modern financial infrastructure actually needs. Speaking at the inaugural Banco de España LatAm Economic Forum at Castillo de Bará, Lagarde said stablecoins have moved from a niche corner of the crypto world to the center of the policy debate at remarkable speed. Once a market worth less than $10 billion six years ago, stablecoins have now grown to more than $300 billion, with the vast majority denominated in U.S. dollars and nearly 90% of the market controlled by Tether and Circle. That growth, she said, has forced regulators to confront a new set of risks, particularly as stablecoins become more tightly linked to the real financial system. The concerns have been especially visible in Latin America and Africa, where stablecoins are increasingly used as a store of value or a practical payment rail in countries with weaker currencies. But Lagarde said the debate has now spread well beyond emerging
