ECB President Raises Concerns About Stablecoin Financial Risks

Christine Lagarde, President of the European Central Bank (ECB), issued a warning about the potential risks posed by multi-jurisdiction stablecoins to EU financial stability. In her September 3, 2025, address, Lagarde emphasized the need for global regulatory collaboration to address these concerns. She outlined specific dangers such as liquidity issues and potential euro outflows impacting the European financial system. The ECB’s stance highlights the precarious nature of unregulated stablecoin operations within the EU. ]