PANews reported on May 9th that, according to CoinDesk, European Central Bank President Christine Lagarde stated in a speech that Europe should not simply replicate the US stablecoin model, but should prioritize building a tokenized settlement infrastructure centered on central bank currency. She pointed out that the $310 billion stablecoin market, dominated by Tether and Circle, poses financial stability risks, potentially transmitting pressure to the underlying asset markets during a crisis.

Lagarde argues that while the technological advantages of stablecoins can be replicated through central bank infrastructure, their monetary functions introduce unacceptable financial stability risks. She cites the 2023 collapse of Silicon Valley Bank, which led to the temporary de-pegging of the USDC, as an example. Despite a consortium of 12 major European banks, including ING, BBVA, and BNP Paribas, planning to launch a private digital euro later this year, citing the "dollarization risk" facing Europe, Lagarde still calls on EU countries to support the development of central bank digital currencies. The European Central Bank aims to launch a digital euro by 2029.