Christine Lagarde is urgent about new regulations for stablcoins in Europe

The president of BCE He asked European legislators to close regulatory gaps that allow the joint issuance of stablecoins outside the EU, this in parallel to the provisions established by law Mica.

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• Christine Lagarde warned of Joint Even Risks of Stablecoins inside and outside the EU.
• The EU seeks to protect investors under the regulatory framework Mica.
• The United States and China advance with their own Stablecoins models.

Christine Lagarde, president of the European Central Bank (ECB), He urged those responsible for the European Union policy to address the regulatory gaps around the stablecoins, particularly those issued outside the Cryptactive Markets Framework (MICA).

During his speech at the ninth annual conference of the European Systemic Risk BoardLagarde stressed that legislators must take measures in cases where an entity covered by Mica and another out of the EU jointly emit Stablecoins.

The official said that these types of issuers should not be able to operate in Europe unless they exist “Solid equivalence regimes” In the country of origin. These frames should ensure that European investors can always redeem their holdings to the nominal value and that the currencies are fully supported.

Lagarde warned that, in case of a run, investors would prefer to go to the jurisdiction with greater safeguards, which would probably be the EU. However, reservations available in European territory may not reach to meet a concentrated demand.

The regulatory framework Mica and its scope

The regulation Mica, Approved in 2023, it seeks to establish a robust standard for the broadcast and supervision of cryptoactive in the European block. Among its most relevant provisions, It prohibits collecting commissions for redemption from Stablecoins and requires that these are fully backed by liquid assets.

He BCE considers that, without additional regulation for extra -community emitters, the objectives of Mica They could be compromised. Lagarde stressed that regulatory equivalence is essential to avoid arbitrations between jurisdictions that weaken the protection of European investors.

This call occurs in a context where the global competition for the Stablecoins market intensifies, involving the United States and China, in addition to the European Union.

The pressure from the United States

The discussion in Europe coincides with the legislative advance in the United States. In July, the American Congress approved a regulatory framework for Stablcoins, which is interpreted as an impulse to the emitters linked to the dollar.

According to analysts, this measure could give competitive advantages to US emitters and consolidate the role of the dollar in cross -border payments. The Board of Directors BCE He had already warned about this scenario in April, when Piero Cipollone, a member of the agency, said that American regulations could lead to commission losses, data leakage and a transfer of deposits in euros towards US banks.

In this way, the regulatory career acquires a geopolitical nuance that goes beyond mere financial supervision.

China enters the conversation

In addition to the United States and Europe, China also observes the evolution of the market. August reports pointed out that the Chinese government considered the possibility of issuing a stablcoin backed in yuan, as a complement to the slow deployment of its digital yuan.

Although the authorities have not officially confirmed the initiative, it is interpreted as a strategic response to the strengthening of the dollar in the digital field. A stable token linked to Renminbi could give China one more tool to expand its influence on international payments.

The combination of regulatory efforts in the EU, legislative initiatives in the United States and explorations of China opens a scenario of competition between powers for the control of the stablocoins ecosystem and digital financial architecture.

Digital euro background

He EU, For its part, it has been analyzing the viability of a digital euro for years. Although a definitive decision has not yet been made, the project is in the investigation phase and could offer European citizens a safe alternative against the advancement of foreign Stablcoins.

However, external pressure, both from the United States and China, could accelerate political decisions around this instrument. For Lagarde and his team, the regulation of Stablcoins is not only a matter of financial stability, but also of monetary sovereignty in an increasingly digitized world.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

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