President of European Central Bank Pushes To ‘Be Ahead' Of Stablecoins Demand

Stablecoins are lauded as a safe solution to volatility, leading the ECB president to push for innovation. However, the presidents before her seem to believe that the crypto market has no future in this industry.

  • Christine Lagarde was preceded as ECB president by Jean-Claude Trichet and Mario Draghi.
  • Both previous ECB presidents are fairly unsupportive of cryptocurrency.

Christine Lagarde is the president of the European Central Bank, and she’s recently made it clear how highly she holds stablecoins. In a recent tweet, she urged the bank to take note of the substantial demand for stablecoins in the world, adding that the institution needs to “be ahead of the curve,” regarding the issuance of stablecoins.

Stablecoins fall under the umbrella of digital currencies and cryptocurrencies. However, rather than holding their own value as a result of demand, they are pegged to a physical asset or fiat currency, reducing the volatile nature that exists in the industry.

Prior to becoming the president of the ECB, as the head of the International Monetary Fund in September, she stated that she would push for institutions to keep up with and adapt to the new financial environment. At the time, she said,

“In the case of new technologies – including digital currencies – that means being alert to risks in terms of financial stability, privacy or criminal activities, and ensuring appropriate regulation is in place to steer technology towards the public good. But it also means recognizing the wider social benefits from innovation and allowing them space to develop.”

Later in the month, the IMF released a statement on stablecoins, noting that they stood to bring major benefits to both individual customers and society as a whole. While introduction of this asset class could result in the loss of banks as intermediaries, the IMF believes that banks would likely work on their own options to compete with stablecoins.

Jean-Claude Trichet, the former president of the ECB, doesn’t share Lagarde’s stance on stablecoins, recently remarking that he doesn’t see cryptocurrencies ever taking over money. If anything, Trichet seeks cryptocurrency purchases as nothing more than speculation, even with the backing of a real asset.

Mario Draghi, who immediately preceded Lagarde, remarked that the cryptocurrency industry’s development is presently being watched by the European System of Central Banks. Draghi has continually been supportive of new technologies but sees both stablecoins and cryptocurrencies in general as being of little value.

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Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

1 COMMENT

  1. It is unlikely that bitcoin or any cryptocurrency will ever pose a significant threat to fiat, because of the problem with adoption. Whales completely control the market, so retailer customers are at the whim of several unknown dictators. This is ultimately going to doom what should be a true revolution in global finance. Far far to much power in far far to few hands. To work these whales need to find a way to democratize their assets. If it were me I would give away 75% of my wealth to say 1 million private individuals. If all whales could be persuaded to do this and drastically reduce the value of bit coin, killing the majority of scam coins in the process the mass adoption could begin. The publicity of such a give away and the interest generated would bring bitcoin into global consciousness. Once that is achieved then you have a real fighting chance to change money and how it is perceived used and regulated. Bitcoin was intended to revolutionise global finance by thinking outside the box completely. Big fat greedy whales as ever will prevent that happening unless one or other of them takes a huge outside the box decision, to really shake up the stagnating cryptocurrency pond and take the philanthropic long view.
    My view is none of them have the imagination or courage.

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