The President of the European Central Bank (ECB), Christine Lagarde, demanded that foreign issuers of stablcoins guarantees to ensure their tokens to prevent the risk of mass removal of reserves in the EU.

Speaking at the annual conference of the European Council on System risks, Lagarde called on legislators to tighten the regulation of digital currencies to eliminate risks associated with the so -called “multi -emission”, when a company from the European Union and a company that is not part of this economic association jointly release interchangeable stablecoins.

According to the regulatory requirements of the EU, stablecoins tied to state currency should be fully provided with reserves. Companies producing steablecines must comply with the same high requirements in the EU and beyond, Lagard insists. For this, it is necessary that the lawmakers cooperate at the international level.

The President of the ECB fears that in the event of a massive withdrawal of funds, investors will prefer to redeem assets in jurisdictions with the most reliable guarantees, that is, in the countries of the European Union. However, their reserves may not be enough to satisfy a sharply arising demand. In addition, new stablecoins may encounter liquidity risks.

“We must take specific steps right now. European legislation should guarantee that such schemes will not be able to work in the EU without guarantees from other jurisdictions regarding the translations of crypto acts between EU subjects and countries that are not part of the EU, ”said Christine Lagard.

At the beginning of the year, Lagarda opposed the inclusion of bitcoin in the strategic reserve of the European Union due to the fact that cryptocurrency can be used to launder money. In March, Lagarde promised that in October this year, the ECB would begin preparation of digital euros for launch.