While they could lower financing costs in the euro area and boost the common currency’s global pull, there are “significant” trade-offs, Lagarde said Friday in a speech.
“They outweigh the short-term gains in financing conditions and international reach that euro-denominated stablecoins might provide,” she said. “If we want to strengthen the international appeal of the euro, stablecoins are not an efficient way of doing so.”
Stablecoins, which are mostly pegged to the US ...