The president of the European Central Bank is climbing to the niche against the stablecoins backed by the dollar. During a conference in Frankfurt, Christine Lagarde demanded “farms” guarantees for any foreign issuer wishing to operate in the EU. A strong signal of European fears in the face of the growing influence of the greenback in cross -border digital payments.
In short
- Christine Lagarde imposes strict equivalence conditions on foreign stablecoins wishing to operate in the EU.
- The ECB fears that a banking rush on stablecoins favors the best protected jurisdictions like Europe.
- Stablecoins now represent nearly $ 290 billion in world capitalization, dominated by the USDT American.
- This outing is part of a European strategy to counter the hegemony of the dollar via the Stablecoins.
Christine Lagarde requires strict guarantees for foreign stablecoins
On Wednesday, at the Conference of the European Council for Systemic Risk in Frankfurt, Christine Lagarde raised his tone.
The president of the ECB requires that foreign stables comply with European standards before any activity in the Union. A position that marks a turning point in the European approach to digital assets.
In a Speech in FrankfurtChristine Lagarde hammered that these assets must respect the regulatory framework of the block in order to prevent arbitration and protect financial stability.
Behind this red line, an obvious target: American giants Tether (USDT) and Circle (USDC), whose cumulative capitalization exceeds $ 220 billion. The stake exceeds the technique: it is a monetary infrastructure battle in the digital age.
The boss of the ECB also warned Against the mismanagement of liquidity between jurisdictions. In the event of a crisis of confidence, the holders will seek buyback in the best protected areas.
However, in Europe, Mica prohibits buying costs: an influx of requests could quickly dry up local reserves if the issuer operates elsewhere while capturing the reimbursements.
This offensive is part of a broader strategy. For months, European authorities have multiplied alerts on stablecoins. The Banque de France also warned in June a risk of “privatization of money”. An assumed vocabulary, which reveals the growing concern of central bankers in the face of the development of private assets likely to bypass their control.
Europe in the face of the challenge of monetary sovereignty
The figures speak for themselves: nearly $ 290 billion in Stablecoins are circulating today in the world. The USDT concentrates approximately 60 % of the market, strengthening the hegemony of the dollar in the digital economy. A situation that Christine Lagarde intends to upset.
She compares these challenges to those encountered by international banking groups, subject to strict liquidity ratios to avoid imbalances between subsidiaries.
Faced with this rise in power of foreign stables, Europe accelerates its own projects. The digital euro, technically ready according to the authorities, could see the light of day before the end of 2025. A defensive project aimed at preserving European monetary autonomy in an increasingly digital world.
But the task looks difficult. While procrastinated Europe, the United States is advancing. The American Act has already posed a legal framework favorable to domestic stablecoins.
For its part, the CEO of Tether, Paolo Ardoino, categorically refused to submit the USDT to the MICA regulation, judging the European requirements “dangerous” for the banking system.
Christine Lagarde's statements mark a new stage in the regulatory battle around Stablecoins. Far from being a simple technical debate, this offensive reveals geopolitical tensions around the future of digital currency. Europe seems determined not to leave the field free to the American giants of the crypto.
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