#The President of the European Central Bank steps up against dollar-backed stablecoins. During a conference in Frankfurt, Christine Lagarde demanded “firm” guarantees for any foreign issuer wishing to operate in the EU. A strong signal of European fears regarding the growing influence of the greenback in cross-border digital payments.
Christine Lagarde imposes strict equivalence conditions on foreign stablecoins wishing to operate in the EU.
The ECB fears that a banking rush on stablecoins will favor the best-protected jurisdictions like Europe.
Stablecoins now represent nearly 290 billion dollars in global capitalization, dominated by the American USDT.
This stance is part of a European strategy to counter the hegemony of the dollar via stablecoins.
Christine Lagarde demands strict guarantees for foreign stablecoins
On Wednesday, during the European Systemic Risk Board conference in Frankfurt, Christine Lagarde raised her voice.
The ECB President demands that foreign stablecoins comply with European standards before any activity in the Union. A stance that marks a turning point in the European approach to digital assets.
In a speech in Frankfurt, Christine Lagarde hammered that these assets must respect the regulatory framework of the bloc to prevent arbitrage and protect financial stability.
Behind this red line, an obvious target: American giants Tether (USDT) and Circle (USDC), whose combined capitalization exceeds 220 billion dollars. The issue goes beyond technicalities: it is a monetary infrastructure battle in the digital age.
The ECB chief also warned against poor liquidity management across jurisdictions. In case of a trust crisis, holders will seek redemption in the best-protected zones.
However, in Europe, MiCA prohibits redemption fees: an influx of requests could quickly dry up local reserves if the issuer operates elsewhere while capturing repayments.$XRP $ETH $BTC
This offensive is part of a broader strategy. For months, European authorities have multiplied warnings about stablecoins.
