ECB's Lagarde is sceptical of euro stablecoins

FRANKFURT - European Central Bank President Christine Lagarde on Friday expressed scepticism over the need for stablecoins pegged to the euro, saying they may hamper the ECB's own work and exacerbate any financial turmoil.

A number of large euro zone banks including Societe Generale have been working on crypto assets pegged to the euro, trying to make inroads in a market dominated by the U.S. dollar and creating instruments that some hope will boost the single currency's own appeal.

But Lagarde said the case for euro-denominated stablecoins was "far weaker than it appears" because they are subject to runs during market turmoil and they weaken the ECB's ability to reach all corners of the economy with its interest-rate policy.

"These trade-offs... outweigh the short-term gains in financing conditions and international reach that euro-denominated stablecoins might provide," she told an audience in Spain. "If we want to strengthen the international appeal of the euro, stablecoins are not an efficient way of doing so."

(Reporting by Francesco CanepaEditing by Alexandra Hudson)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 8, 2026 at 12:02 AM.