Central Banks

Lagarde Sees Euro-Stablecoin Risks for Banking, Monetary Policy

Christine LagardePhotographer: Liesa Johannssen/Bloomberg

European Central Bank President Christine Lagarde said that even euro-denominated stablecoins would create risks to financial stability and monetary-policy transmission, questioning the case for introducing such instruments.

While they could lower financing costs in the euro area and boost the common currency’s global pull, there are “significant” trade-offs, Lagarde said Friday in a speech.