European Central Bank President Lagarde: AI May Trigger a "Catastrophic Financial Crisis"! ECB Urgently Tests Security of 109 Banks, Calls for Nuclear-Weapon-Level Regulatory Framework

European Central Bank (ECB) President Christine Lagarde recently issued a stern warning, directly pointing out that the unregulated development of artificial intelligence (AI) could trigger a devastating financial crisis. To prevent this, the ECB has launched cyberattack stress tests on 109 European banks, and Lagarde has further called on the global community to quickly establish an AI governance framework similar to the "Nuclear Non-Proliferation Treaty."
(Background: AI giants like OpenAI, Anthropic, and Google DeepMind will attend the G7 summit)
(Additional background: U.S. Department of Justice blocks xAI from pollution lawsuit: shutting down Colossus 2 data center threatens U.S. military AI operational capabilities)

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• Technology is not the culprit; the real bomb destroying jobs is the financial crisis
• ECB takes defensive measures: cyber stress tests on 109 banks
• Calls for "nuclear-level" global regulation to break free from heavy reliance on the U.S.

As AI penetrates the global economy at an unprecedented speed, central banks worldwide have begun to sound alarms over potential systemic risks. In response, ECB President Christine Lagarde expressed deep concern about the possible financial turmoil caused by AI technology during the Cotec Europa summit held in Venice, Italy.

Technology is not the culprit; the real bomb destroying jobs is the financial crisis

Lagarde candidly stated in her speech that even the most comprehensive regulations cannot stop the rapid development of AI technology. She emphasized, "We cannot stop artificial intelligence, even with sound regulations. But we can prepare ourselves so that our citizens benefit from it and are protected from its dangers."

However, what worries this European Central Bank leader most is not the AI technology itself, but the chain reactions triggered by its misuse or loss of control. "Looking at recent history, the forces that have destroyed the most jobs and wiped out civilian savings are often not technological revolutions, but financial crises," Lagarde warned. She pointed out that AI is fundamentally reshaping the financial sector from within, creating new points of risk concentration and opening a highly destructive door for malicious attackers.

ECB takes defensive measures: cyber stress tests on 109 banks

To prevent AI from becoming the next trigger for a financial tsunami, the ECB has shifted from passive to active measures. Lagarde revealed that the ECB has recently conducted scenario tests targeting serious cyberattacks on 109 banks, and most of the security vulnerabilities identified have been addressed.

She further noted that advanced AI models (such as the Mythos model from Anthropic) can identify critical vulnerabilities in traditional banking software at an extremely fast pace. This has compelled the ECB to personally contact bank CEOs to ensure that financial institutions are prepared for new types of AI-related attacks and to recognize that building effective defense systems will require enormous financial investment.

Calls for "nuclear-level" global regulation to break free from heavy reliance on the U.S.

Additionally, Lagarde highlighted Europe's current vulnerability in the AI field—its heavy dependence on U.S. (especially California) AI supply chains. She expressed concern that AI-driven market frenzy and panic could easily lead to a sudden collapse of investor confidence and sharp market corrections.

In facing borderless AI threats, Lagarde strongly urged the international community to establish a global AI governance framework similar to the Cold War-era "Nuclear Non-Proliferation Treaty." On the European front, she emphasized the urgency of accelerating the creation of the "Capital Markets Union," coupled with strengthening banking resilience and cautious supervision, to truly build a firewall. Lagarde concluded by reiterating, "Ensuring that this technological revolution does not evolve into a financial crisis is the best service the ECB can provide to the people of Europe."