world-economy

ECB's Lagarde Warns of Stablecoin Risks as Europe Faces Energy Crisis

European Central Bank President Christine Lagarde cautioned that euro-denominated stablecoins pose significant threats to financial stability and monetary policy transmission. She cast doubt on their viability as the central bank navigates competing pressures from geopolitical tensions affecting energy markets and inflation dynamics across the bloc. Lagarde signaled the ECB is carefully calibrating its policy stance to avoid acting prematurely or allowing conditions to deteriorate further. She separately urged European leaders to accelerate efforts reducing the region's dependence on fossil fuel imports, citing escalating energy costs as a critical vulnerability. The remarks underscore mounting concerns about the durability of recent rate-hike expectations, with market participants reassessing the timing of future ECB moves amid broader economic uncertainty.