ECB President Christine Lagarde has raised concerns about the risks associated with stablecoin reserves, despite the EU's Markets in Crypto-Assets (MiCA) regulatory framework. Speaking on December 18, 2025, Lagarde emphasized the European Central Bank's (ECB) responsibility to ensure financial stability rather than dictate market models. She highlighted the need for the digital euro to be private, affordable, and user-friendly. Lagarde also pointed out potential foreign exchange risks posed by stablecoins, urging caution to prevent capital outflows and monetary dependencies. Her remarks are part of broader regulatory efforts, including those under the Countering the Financing of Terrorism regulations, to safeguard financial systems.