European Central Bank (ECB) President Christine Lagarde urged the European Union (EU) Lawmakers to impose strict requirements and care for foreign stablecoins.
Lagarde argues that they must comply with bloc regulatory standards before working on the EU land, he said in a speech In a European systemic risk board (ESRB) Conference in Frankfurt on Wednesday.
The ECB president warned that during a Stablecoin running, investors were more likely to be redeemed to constituents with stronger protection, such as the EU, where markets in crypto assets (Mica) Regulation prohibits redemption fees, potential depletion of local reserves.
“The risk of mismanagement of liquidity in the constituents is one we have seen.
“This is why requirements such as the net stable ratio of funding and ratio of the liquidity range apply to each level of aggregation. The multi-issue schemes that mimic the same risks within a single creature.”
He emphasized the need for stable regulation to prevent arbitration and to ensure financial stability of the boundaries.
The Stablecoins -token that has reached the value of a traditional financial possession such as a Fiat Currency -is at the front and center of developments in the approach to digital ownership of governments and regulators in 2025.
Basic jurisdictions such as The US and Hong Kong The rules for the release and treatment of stablecoins, which follow from the EU, have been introduced and treatment through MICA.
