Frankfurt (Germany), 8 May (LaPresse) – “If we want to strengthen the euro’s international role, stablecoins are not an efficient way of doing so.” This was stated by the President of the European Central Bank, Christine Lagarde, speaking at the Banco de España LatAm Economic Forum in Roda de Bará, Spain. According to Lagarde, once the monetary function of stablecoins is separated from their technological function, “the case for promoting euro-denominated stablecoins is much less solid than it appears”. The ECB President explained that the current debate risks confusing the benefits of blockchain technology with those of the financial instrument itself. In her view, Europe should instead focus on more integrated capital markets and a greater availability of safe assets to underpin the euro’s international role. Lagarde also warned that widespread adoption of private stablecoins could create risks to financial stability and weaken the transmission of monetary policy, particularly in the euro area where bank credit remains central to the financing of the economy. “Stablecoins cannot build these foundations for us, and without them, euro-denominated stablecoins would risk amplifying the vulnerabilities we are trying to overcome,” she said.
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