ECB’s Lagarde Pushes Back on Euro Stablecoins, Warns of ‘Structural Weaknesses’

[Oshosondy]

This is coming from the European Central Bank president that euro stable coins have disadvantages than advantages. You can read the news yourself: https://decrypt.co/367265/ecbs-lagarde-pushes-back-on-euro-stablecoins-warns-of-structural-weaknesses

ECB President Christine Lagarde said euro stablecoins are “not an efficient way” to boost the euro’s global role, warning their risks outweigh short-term gains.
She flagged two “material” risks: financial instability from sudden redemptions and weaker monetary policy transmission if deposits shift out of banks.

Industry leaders pushed back, warning Europe risks dollar dominance and sending a negative signal to private investors building euro stablecoins.

I like the industry leaders that are pushing back. I think sometimes that people I call the leaders are misleading people or just politics from the bank?

This is not coins like bitcoin or ethereum or solana, but it is the coin that can help their own currency which is euro. There are many people that have access to dollar today through the use of stable coins.

Is she right?

But she may like CBDCs which are not useful.

[adultcrypto]

Central Banks stablecoins have been proven time without number to be a failed project, it is dead and will never survive. My country once created theirs but it died before it started even though politicians  spent millions of dollars in that white elephant project. It is obvious the ECB boss has come to terms with reality which necessitated this push back, they wouldn't want to waste the type of money and time my government wasted in something whose advantages are not worth the time and resources. If the Central Banks want to hold real treasures, what theg should do is invest in bitcoin.

[Smartprofit]

It seems European leaders have made their choice. They've decided to promote central bank digital currencies (and abandon stablecoins entirely).🙋

Modern Europe, unfortunately, is gravitating toward digital dictatorship. True, they're betting not on an individual dictator, but on the power of bureaucracy. However, a dictatorship of bureaucracy, in my opinion, is no better than the dictatorship of an individual.

CBDCs, in my opinion, are one of the main tools of such a dictatorship of bureaucracy (a new digital concentration camp). CBDCs are not fully-fledged money. They are certificates for the purchase of a certain set of permitted goods and services. With CBDCs, people can literally be trained like dogs, prohibiting them from certain actions and permitting others. CBDCs are shackles and handcuffs that cannot be removed because they are simply a digital protocol.

Stablecoins are a more liberal financial instrument than CBDCs (although, of course, citizens' funds in stablecoins can also be effectively blocked). The European Union's rejection of Eurostablecoins is, in my opinion, a major blow to democracy.🤷

[Fortify]

This is coming from the European Central Bank president that euro stable coins have disadvantages than advantages. You can read the news yourself: https://decrypt.co/367265/ecbs-lagarde-pushes-back-on-euro-stablecoins-warns-of-structural-weaknesses

ECB President Christine Lagarde said euro stablecoins are “not an efficient way” to boost the euro’s global role, warning their risks outweigh short-term gains.
She flagged two “material” risks: financial instability from sudden redemptions and weaker monetary policy transmission if deposits shift out of banks.

Industry leaders pushed back, warning Europe risks dollar dominance and sending a negative signal to private investors building euro stablecoins.

I like the industry leaders that are pushing back. I think sometimes that people I call the leaders are misleading people or just politics from the bank?

This is not coins like bitcoin or ethereum or solana, but it is the coin that can help their own currency which is euro. There are many people that have access to dollar today through the use of stable coins.

Is she right?

But she may like CBDCs which are not useful.

I'm not sure that is pushing back very successfully, Trump has already undermined the dollar massively since getting into power and will continue to do so - they're not going to consider that much of a threat. China wants less trade with America, the Middle East is realizing it's a rather unreliable ally and countries like Russia have long since abandoned the dollar. There needs to be strong technical arguments on why there should be a digital euro if you want to see the idea gain traction. There's not actually a single country around the world that has successfully proven it to work so far, it may be coming but really needs those strong proof of concepts by much smaller countries to evidence that it'll work for bigger blocs.

[Fiatless]

I like the industry leaders that are pushing back. I think sometimes that people I call the leaders are misleading people or just politics from the bank?

This is not coins like bitcoin or ethereum or solana, but it is the coin that can help their own currency which is euro. There are many people that have access to dollar today through the use of stable coins.

Is she right?

But she may like CBDCs which are not useful.

She is concerned about large-scale deposit moving into non-bank stablecoins because it could weaken bank lending power. I wonder why she is not concerned about the dominance of the US stablecoin industry. US-backed stablecoins have about $300 billion in circulation, making it the major player in the industry. ECB President Christine Lagarde is trying to show that the EU is not a copycat of the US. She thinks that tokenising commercial bank deposits would be a better option. I hope this will not affect the EU and it might become too late for the zone to catch up with the US in the stablecoins industry.

[Wiwo]

The US dollars increased in global liquidity through stablecoin tether, this increased the dollar global coverage and also allow trans border transactions on a decentralized protocol outside the US banking system.

Why block Euro from receiving similar global trade dominance,  the leaders are afraid not for anything aside stability of the banking system if stablecoin allowed, the push back is most needed at least trying to eliminate citizens freedom by channeling everything to the banking selector is a way for the government to control the financial transactions of it citizens.

This is what is experience in many countries instead adopting stablecoins, their rather developed CBDC which have become a failure in most countries including Nigeria.