Lagarde: Euro Stablecoins 'Weaker Than They Seem' Amid MiCA

ECB President Christine Lagarde wants Europe to own its digital settlement rails. Speaking at a June 15 conference in Frankfurt, she framed digitalisation and tokenisation as urgent strategic priorities. She also repeated her skepticism of euro-denominated stablecoins, calling their rationale "weaker than they might seem."

The conference, "Money in transition: digitalisation and innovation in payments," was hosted by the ECB. Lagarde argued that Europe needs to build its own digital infrastructure rather than rely on foreign payment systems. The digital euro project is the centerpiece. After a preparation phase that started in November 2023, the project moved into its next phase on October 30, 2025. That phase involves rule-making and technical testing. The ECB has said the digital euro will not replace cash. It will serve as a complement, with features for privacy and offline payments.

Lagarde had already telegraphed her stance on stablecoins at the Bank of Spain's LatAm Economic Forum on May 8. There, she said settlement in tokenised markets should be anchored to central bank money, not private stablecoins. She described the case for euro stablecoins as weak. That view aligns with the EU's Markets in Crypto-Assets framework, which tightens stablecoin issuance rules. The MiCA deadline is July 1. Crypto firms operating in Europe face a cutoff for compliance, as covered in our MiCA deadline piece.