Lagarde: 'Unconvincing about the usefulness of stablecoins for the euro'

"If we want to strengthen the international appeal of the euro, stablecoins are not an efficient way to do this": rather, we need "more integrated capital markets through the pooling of savings and investments, and, over time, a safe asset" through debt issues. This was said by the president of the Bce Christine Lagarde at the Banco de España LatAm Economic Forum in Roda de Bará, Spain.

"With nearly 98 per cent of stablecoins denominated in US dollars, and with the US now seeking to consolidate this position through legislation, the increasingly popular argument is that Europe needs to align with the US model to remain competitive. But this approach is based on confusion" about the purpose of stablecoins, said the European Central Bank governor, and, "if we look at each function separately, the case for adoption looks less compelling.