ECB President Lagarde: Euro Stablecoins Will Pose Risks to Banking and Monetary Policy

Golden Finance reported on May 8 that European Central Bank President Christine Lagarde stated that even euro-denominated stablecoins could pose risks to financial stability and the transmission mechanism of monetary policy, questioning the necessity of introducing such tools. In a speech on Friday, Lagarde noted that while these stablecoins might reduce financing costs in the eurozone and enhance the euro's global appeal, there are 'significant' trade-offs involved.