Christine Lagarde expressed concern over stablecoins at a conference in Portugal, highlighting their potential to weaken national sovereignty and disrupt monetary governance. She emphasized that stablecoins should not be mistaken for money, calling for clarity between money and payment systems. As stablecoins are primarily issued by private companies, there is a risk of moving towards privatization of money, which Lagarde deems concerning for public welfare and economic stability. Central banks must find effective regulation methods to address the challenges posed by these digital assets.
"I think that we are falling prey to some confusion between money, means of payment, and payment infrastructure, and that is accelerated..."
"I regard money as a public good, and ourselves as the public servants in charge of securing and protecting that public good..."
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