ECB's Lagarde Fires Warning Shot at EU Plan to Loosen Stablecoin Rules

According to The Block, European Central Bank President Christine Lagarde warned EU finance ministers that proposed changes to ease euro stablecoin regulations would destabilize bank funding and weaken the effectiveness of interest-rate transmission. The ECB's pushback comes as EU policymakers weigh adjustments to the stablecoin framework, which the central bank argues could draw deposits away from traditional banks and undermine monetary policy tools at a time when the bloc is already navigating fragile economic conditions.