Overview
- Christine Lagarde said euro‑pegged stablecoins are not needed and could worsen financial turmoil.
- She argued the trade‑offs outweigh any short‑term gains in financing or global reach for the euro.
- She pointed to USD Coin’s drop during the Silicon Valley Bank collapse as proof of run risk.
- Lagarde endorsed tokenised commercial bank deposits as a safer option that can still move on blockchain.
- Her stance conflicts with backing from the European Commission and France as banks such as Société Générale develop euro‑linked tokens to boost the currency’s appeal.