Christine Lagarde Cracks Down on Foreign Stablecoins as Europe Seeks Control

European Central Bank President Christine Lagarde has taken a firm stance against dollar-backed stablecoins, demanding strict regulatory compliance for foreign issuers operating within the EU. The MOVE signals growing European concerns over the greenback's dominance in cross-border digital payments.

Speaking at the European Systemic Risk Board conference in Frankfurt, Lagarde emphasized the need for "firm" guarantees from stablecoin issuers. The ECB fears unchecked growth could favor jurisdictions with stronger protections, potentially undermining European financial sovereignty.

With stablecoins now representing nearly $290 billion in global market capitalization—led predominantly by U.S.-based Tether—Europe appears determined to counter dollar hegemony through tighter oversight. This policy shift marks a significant evolution in the bloc's approach to digital assets.