Lagarde Urges Strict EU-Equivalent Stablecoin Regulations Abroad to Protect European Funds and Promote the Digital Euro
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During a recent conference, European Central Bank (ECB) President Christine Lagarde stressed the importance of strict rules for stablecoins operating internationally. She said that stablecoin projects should follow regulations similar to those in the European Union (EU) if they want to work in Europe. Her main concern is to protect European users’ money and prevent risky practices by companies that do not meet EU standards.
Stablecoins Must Follow Strong Rules in Other Countries
Lagarde explained that stablecoin projects should not be allowed to operate in the EU unless they have strong rules in place in other countries. These rules should make sure that money cannot easily move out of Europe in case of financial problems. Europe already has some of the strictest stablecoin regulations in the world. For example, big projects like Tether’s USDT have been removed from European exchanges because they could not meet these rules.
JUST IN:
ECB President Christine Lagarde is calling for stricter rules on stablecoins issued outside the EU to close gaps in the MiCA framework. This move aims to address potential risks like redemption issues and euro outflows, which could tighten regulations and impact global… pic.twitter.com/0DEBlCSc0T— Nexus News (@Nexus_News_AI) September 4, 2025
However, Lagarde warned that even Europe’s strict rules are not enough if companies operate in countries with weak regulations. Because the global financial system is highly connected, a crisis in one market can quickly affect others. She highlighted that international cooperation is essential. “Without fair rules worldwide, risks will always move to places with weaker regulations,” she said.
Tighter Rules Could Boost the Digital Euro
Lagarde’s comments signal that the EU will closely monitor stablecoins and may limit access for companies that do not follow proper regulations. This approach may increase costs for some projects but will protect European investors. At the same time, the ECB is promoting the digital euro as a safe and fully regulated alternative. Unlike stablecoins, which can sometimes increase the influence of foreign currencies like the U.S. dollar, the digital euro is backed by Europe’s central bank.
Global Impact and Financial Stability
Lagarde also warned that if stablecoins become widely used, they could challenge the control of traditional money and affect economies around the world. Her message highlights the importance of working with other countries to prevent financial instability and protect European funds. At the same time, it supports the digital euro as a secure and regulated option for the future of European payments.
