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Lagarde Rejects U.S.-Style Stablecoins, Backs ECB Appia Plan for 2028 Settlements
ECB President Christine Lagarde argued that private stablecoins are not an effective tool for boosting the euro's global role and said the euro should remain the regulated settlement asset. She warned that yield-bearing structures tied to U.S. government bonds could drive capital flows the ECB cannot control, and pointed to past depegging episodes such as USDC during the SVB collapse. The ECB is instead advancing Project Pontes and the Appia roadmap, targeting 2028 for tokenized-asset settlement using central bank money rather than private tokens.