ECB Lagarde warns Stablecoins could lead to the privatisation of money
Increasingly nation states are worried that Stablecoins will privatise money, in the hands of companies, and reduce or eliminate the state's control of money and fiat currencies.
Key takeaways
- The rise in stablecoin adoption is concerning central banks, which now face competition from these new tools that rival their fiat counterparts.
- Christine Lagarde, President of the European Central Bank (ECB), has warned about the drawbacks of the increased use of stablecoins and their role as money.
- Lagarde and the European Central Bank have promoted the digital euro, the upcoming European Central Bank Digital Currency (CBDC), as a tool that would both ease the use of digital payments and protect European sovereignty.
Cite or link to this article
Griffin, M. (2025) 'ECB Lagarde warns Stablecoins could lead to the privatisation of money', 311 Institute, 3 October. Available at: https://www.311institute.com/ecb-lagarde-warns-stablecoins-could-lead-to-the-privatisation-of-money/ (Accessed: 1 October 2026).
As we watch companies like Walmart and Amazon think about rolling out their own private Stablecoin networks and currencies Lagarde stated that the rise of stablecoin adoption has introduced other risks as it weakens sovereignty and reduces the ability to conduct monetary policy. She emphasized that, as they currently stand, stablecoins should not be treated as money.
The rise in stablecoin adoption is concerning central banks, which now face competition from these new tools that rival their fiat counterparts. Christine Lagarde, President of the European Central Bank (ECB), has warned about the drawbacks of the increased use of stablecoins and their role as money.
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On Tuesday, during a central bank’s meeting in Portugal, Lagarde touched on the subject, reinforcing that these tools shouldn’t be considered money. She stated:
I think that we are falling prey to some confusion between money, means of payment, and payment infrastructure, and that is accelerated or emphasized as a result of the technology that is being used, and some technologies in particular.
Lagarde also referred to the fact that stablecoins are issued by private companies, like Circle and Tether, and that this clashed with her conception of money as a “public good.”
“My fear is that that blurring of the lines I mentioned earlier is likely to lead to a privatization of money. I don’t think that this is the purpose for which we’ve been appointed to do the job that we have, nor is it good for this public good that is money,” she asserted.
She also stressed that the introduction of stablecoins might undermine the capacity of central banks to apply effective monetary policy, as these are often used as proxies for their fiat counterparts.
Lagarde and the European Central Bank have promoted the digital euro, the upcoming European Central Bank Digital Currency (CBDC), as a tool that would both ease the use of digital payments and protect European sovereignty. In June, Lagarde noted that, pending regulatory approval, the digital euro was ready to be launched soon.
FAQ
Why does this matter?
Increasingly nation states are worried that Stablecoins will privatise money, in the hands of companies, and reduce or eliminate the state's control of money and fiat currencies.
About the author
Matthew Griffin Founder, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
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Sources and further reading
- Ecb president christine lagarde says 173037716 finance.yahoo.com
Source: first published by the 311 Institute on 3 October 2025. Cite as: Griffin, M. (2025). ECB Lagarde warns Stablecoins could lead to the privatisation of money. 311 Institute. https://www.311institute.com/ecb-lagarde-warns-stablecoins-could-lead-to-the-privatisation-of-money/
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