ECB Chief Lagarde: Crypto and Defi Could Pose ‘Real Risks’ to Financial Stability

ECB Chief Lagarde: Crypto and Defi Could Pose ‘Real Risks’ to Financial Stability


The president of the European Central Bank (ECB), Christine Lagarde, says crypto assets and decentralized finance (defi) have the potential to pose “real risks” to financial stability. She has some regulatory suggestions to supplement Europe’s Markets in Crypto Assets Regulation (MiCA) bill.

Lagarde on Crypto Regulation

ECB President Christine Lagarde talked about cryptocurrency regulation at the European Parliament’s Committee on Economic and Monetary Affairs hearing Monday. She said:

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We believe, as we are embarking on this work concerning crypto assets and the risk that they pose, that crypto assets and decentralized finance (defi) have the potential to pose real risks to financial stability.

“This would be particularly the case if the rapid growth of crypto-asset markets and services continue … and the interconnectedness with

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