The Daily Peg

Christine Lagarde throws a spanner into the works of euro stablecoins.

Editorial hello

In today’s Daily Peg, which let’s face it, is sometimes not daily — hey, I’m doing the best that I can! — there’s an abundance of academics stating somewhat obvious things. This includes profound observations like that during periods of stress in crypto markets, safer stablecoins experience net inflows and riskier ones suffer net outflows and that generally crypto investors prefer to park value in stablecoins over real dollars.

It feels only right that they should all give thanks and praise to Tether for allowing such sustenance:

More importantly, ECB head honcho, Christine Lagarde, has publicly snubbed the good people at Qivalis by dissing euro-denominated stablecoins. She claims in her latest speech that such innovations offer limited technological upside to the eurozone (none, at least, that the digital euro already accounts for) and plenty of monetary policy downsides because the eurosystem is so much more reliant on banks than the US is.

But the speech also contains a more revealing — if indirect — admission.