European Central Bank President Christine Lagarde has raised fresh concerns over the growing use of stablecoins, warning that their expansion poses a threat to monetary sovereignty and the public nature of money.
Speaking at a central banking forum in Portugal, Lagarde criticized the blurred lines between money, payment methods, and technology infrastructure.
She argued that stablecoins—often backed and issued by private companies—should not be classified as true money, as they risk shifting control of monetary systems into private hands.
“My concern is the creeping privatization of money,” she said, pointing out that firms like Circle and Tether could erode central banks’ ability to steer monetary policy effectively.
These digital tokens, often used as fiat substitutes, may weaken the influence of official currencies if left unchecked.
Lagarde reaffirmed the ECB’s support for the digital euro, describing it as a necessary step to maintain control over Europe’s financial infrastructure in the digital age. Pending approval, the CBDC is reportedly close to launch.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/stablecoins-are-not-money-says-ecbs-christine-lagarde/
