Christine Lagarde Insists on Strict Control of Stablecoins in Europe
Date: 2025-09-04 Author: Henry Casey Categories: CRYPTO PAYMENTS
At the annual meeting of the European Systemic Risk Council, the President of the European Central Bank Christine Lagarde drew attention to the problem of regulating stablecoins. According to her, additional measures must be taken to minimize the threats associated with the so-called "multi-issue" - a situation when the same digital currency is issued jointly by companies from the EU and countries outside it.
According to the current rules, stablecoins pegged to fiat currencies must be 100% backed by reserves. Lagarde emphasized that such standards must apply not only within the European Union, but also beyond its borders. This requires close cooperation between national and international regulators.
The main danger, according to the head of the ECB, is that in the event of a massive withdrawal of funds, investors will seek the most reliable guarantees in EU countries. However, the volume of reserves available in these jurisdictions may not be sufficient to cover a sudden influx of withdrawal requests. In addition, new stablecoins risk facing liquidity management problems, which increases systemic risks.
Lagarde noted that action cannot be delayed: "European legislation must provide mechanisms to prevent multi-issue schemes from operating without the participation of other jurisdictions and their obligations to transfer crypto assets between the EU and external countries."
This is not the first time that Lagarde has criticized certain segments of the cryptocurrency market. Earlier this year, she rejected the proposal to consider Bitcoin as a possible element of the EU's strategic reserves, citing the high risks of its use for illegal financial transactions.
In addition, in the spring, Lagarde said that in October 2025, the ECB would begin active preparations for the launch of a digital euro. This project is seen as a tool for increasing the competitiveness of the European financial system and reducing dependence on unguaranteed private cryptocurrencies.
Thus, the positions of the ECB and Lagarde personally remain consistent: the regulator advocates strict control over digital assets, especially stablecoins, which, despite their stability, pose serious risks to the financial system without proper regulation and international coordination.
