Lagarde Says Europe Should Favor Digital Euro Infrastructure Over Private Stablecoins

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ECB President Christine Lagarde said Europe should build tokenized settlement infrastructure anchored in central bank money instead of copying a stablecoin market that is 98% dominated by dollar-pegged tokens. Christine Lagarde said stablecoins can create financial stability risks during stress, citing the March 2023 USDC depeg after Circle disclosed $3.3 billion of reserves at Silicon Valley Bank. Her comments came as Qivalis, a consortium of 12 European banks, plans to launch a privately issued digital euro later this year.

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