Lagarde Rejects Private Euro Stablecoins, Advocates ECB Tokenized Infrastructure

ECB President Christine Lagarde stated on May 8 that privately issued euro stablecoins won't bolster the euro's global role, warning of bank run risks, de-pegging like the 2023 SVB/USDC incident ($3.3bn exposure), and deposit substitution in the $310bn stablecoin market (98% USD-dominated, 90% by Tether/Circle). This follows Bank of Italy's Chiara Scotti urging tokenized SEPA payments on May 5 and Sabadell's May 6 join to the 12-bank Qivalis consortium for a MiCA-compliant euro stablecoin (1:1 backed, ≥40% deposits) targeting H2 2026 launch when euro tokens hold 1%. The policy rift favors ECB projects Pontes (Q3 2026) and Appia (2028) over private efforts ahead of digital euro (2029).