ECB's Lagarde reiterates call for strong stablecoin legislation

European Central Bank (ECB) President Christine Lagarde has reiterated the need for strong legislative measures to prevent the uncontrolled circulation of stablecoins within the European Union (EU), according to media reports. She stated that stablecoins should only be permitted in Europe if they are subject to robust regulations from other jurisdictions or if adequate safeguards are in place. This follows recent remarks from Lagarde in which she warned that stablecoins could pose risks to monetary policy and financial stability. She has also previously noted that such assets must be controlled by strict rules, especially when operating across borders, and that stablecoins offered by big tech companies could create greater privacy risks for consumers.