ECB Warns of Stablecoin Stability Risks: Calls for Stronger Regulation

Christine Lagarde, President of the European Central Bank (ECB), has sounded a warning about the potential liquidity risks posed by stablecoins within the European Union (EU). She emphasizes that unregulated stablecoins could destabilize financial markets if proper regulatory measures are not implemented swiftly. Lagarde notes that the rapid growth of stablecoin usage, exceeding current regulatory capabilities, presents a concerning lack of oversight.