Lagarde warned that large stablecoins like Tether and USDC, which now dominate a $310 billion market, pose financial stability risks and could transmit stress to underlying asset markets during periods of turmoil. European Central Bank President Christine Lagarde argued that Europe should prioritize building tokenized settlement infrastructure anchored in central bank money rather than promoting privately issued euro-pegged stablecoins. Lagarde warned that large stablecoins like Tether and USDC…
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