European Central Bank (ECB) President Christine Lagarde urged the European Union (EU) Legislators impose strict requirements and safeguards in foreign stables.
Lagarde argued that they should meet the regulatory standards of the block before operating on the EU floor, he said in a speech on a European systemic risk board (ESRB) Conference in Frankfurt on Wednesday.
The president of the ECB warned that during a stablecoin career, investors would be more likely to be redeem in jurisdictions with stronger protections, such as the EU, where market-active markets (Mica) The regulation prohibits redemption rates, which potentially exhaust local reserves.
“The risk of poor liquidity management between jurisdictions is one that we have seen before. Banking groups, for example, are already obliged to ensure that the reserves are available in the part of the group where and when they are necessary,” said Lagarde.
“That is why requirements such as the net stable financing ratio and the liquidity coverage ratio at all levels of consolidation are applied. Multiple emissions schemes replicate these same risks within a single entity.”
She emphasized the need for robust regulation to avoid arbitration and guarantee financial stability through borders.
The stablecoins (Token linked to the value of a traditional financial asset, such as a fiduciary currency, have been the front and the development center in the approach of digital assets by governments and regulators in 2025.
The main jurisdictions, such as the United States and Hong Kong, have introduced rules for the issuance and treatment of the stable, after the EU, which handles them through Mica.
