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Lagarde Warns Euro Stablecoins Could Threaten Financial Stability
ECB President Christine Lagarde warned that euro-denominated stablecoins could threaten financial stability and monetary policy transmission. Christine Lagarde said euro stablecoins are not an efficient tool for strengthening the euro’s international status. The view contrasts with Bundesbank President Joachim Nagel’s support in February, and an ECB March working paper also warned of risks to Eurozone banks and monetary sovereignty.