Overview

• Central bank governors at their Sintra meeting warned that private stablecoins and political pressure on the U.S. Federal Reserve threaten control over monetary policy and financial stability.
• ECB President Christine Lagarde described stablecoins as a privatization of money that risks undermining inflation management and national sovereignty.
• Bank of England’s Andrew Bailey insisted stablecoins must meet money’s official criteria, while Federal Reserve Chair Jerome Powell highlighted progress on the GENIUS Act toward a unified regulatory framework.
• Bank of Korea Governor Rhee Chang-yong cautioned that without assured dollar swap-lines, South Korea may need self-defense measures to secure external dollar funding.
• Policymakers pressed the European Parliament for prompt digital euro legislation and discussed reinforcing cross-border liquidity mechanisms to bolster central banks’ resilience.