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

CoinFeed reported on May 9th, citing CoinDesk, that European Central Bank President Christine Lagarde stated in a speech that Europe should not simply replicate the US stablecoin model, but should prioritize building 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 underlying asset markets 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 2023 collapse of Silicon Valley Bank, which led to the temporary de-pegging of USDC, as an example.