ECB President makes clear statement on stablecoin: EU should lead the world in stablecoin projects

According to foreign media reports on December 16, European Central Bank (ECB) President Christina Lagarde issued a clear statement on the agency's views on cryptocurrencies and stablecoins.

1599px-Women_in_Economic_Decision-making_Christine_Lagarde_ (8414041294) (Image source: wikimedia )

The European Central Bank manages the financial and economic interests of 19 EU countries (using the "Euro"). At a recent press conference on monetary policy, the European Central Bank expressed its attitude on the development of the stablecoin market. In a brief speech on cryptocurrencies, Lagarde noted that the organization has recognized the impact and potential threats of stablecoins:

In view of the development we have seen, I think we should be at the forefront of the world in the stablecoin project.

Lagarde also mentioned that Canada, the United Kingdom, and "when other countries" are already researching technologies related to stablecoins. These words seem to indicate that if the European Central Bank does not start investigating the potential of the stablecoin project, it is likely to fall behind.

Lagarde concluded:

It is clear that we must respond to external needs.

It is unclear how the European Central Bank plans to deal with countries, but some commentators believe that the European Central Bank will consider developing its own stablecoin. Tuur Demeester of Adamant Captical believes that the European Central Bank may be looking to build its own stablecoin. He stated in a recent tweet:

It looks like the European Central Bank will develop a stablecoin project.

European Central Bank plans to launch stablecoin?

Lagarde also mentioned that the G7 working group led by Benoit Coeure of the Payment and Market Infrastructure Committee (CPMI) is already investigating the risks and benefits of stablecoin assets. The organization has written a white paper entitled "Investigating the Impact of Global Stablecoins", which is likely to be the first time that a large global financial institution has officially entered the cryptocurrency space.

Unlike typical blockchain companies, the technical basis of cryptocurrency projects is not described in this white paper, but the legal, financial, and government impacts of stablecoins are studied. Therefore, it remains to be seen whether the EU will use the "Euro" version of the stablecoin in the short term.

The performance of the cryptocurrency market this month remains sluggish, with the total market value of cryptocurrencies falling from US $ 205 billion in early December to around US $ 195 billion. Analysts believe that the downward trend in cryptocurrencies may continue, and some believe that the price of Bitcoin may hit a low of $ 6,400.