European Central Bank President Christine Lagarde: Europe should not simply replicate the US stablecoin model.

According to CoinDesk, European Central Bank President Christine Lagarde stated in a speech that Europe should not simply replicate the US stablecoin model, but should prioritize building a tokenized settlement infrastructure centered on central bank currency. She pointed out that the $310 billion stablecoin market, dominated by Tether and Circle, poses financial stability risks, potentially transmitting pressure to the underlying asset market during crises. Lagarde believes that while the technological advantages of stablecoins can be replicated through central bank infrastructure, their monetary function introduces unacceptable financial stability risks. She cited the collapse of Silicon Valley Bank in 2023, which led to the temporary de-pegging of USDC, as an example. Although a consortium of 12 major European banks, including ING, BBVA, and BNP Paribas, plans to launch a private digital euro later this year, citing the "dollarization risk" facing Europe, Lagarde still called on EU countries to support the development of central bank digital currencies. The European Central Bank aims to launch a digital euro by 2029.