Lagarde relies on the euro: a crypto lever in Europe?

Christine Lagarde, President of the European Central Bank, revealed an ambitious vision to increase the world’s role. Its attraction to a stronger economic foundation, reinforced commercial ties and a deep institutional reform signals Europe’s bold ambitions to take over the lead in global financing-maybe shaped the future of crypto in the region.

Change of global dynamics and challenge to the dollar

Lagarde believes that the euro can gain land while the world changes and is questioned by the dominance of the US dollar. This moment offers Europe a real opportunity to increase the international euro profile.

She mentioned that open markets and shared rules weaken, which challenges the position that is owned by the dollar.

This year, many investors were distant from the dollar, which were concerned about the unpredictable trade policies of President Trump. While confidence in the US currency eye, some turn to Europe.

Interest in Europe has increased, especially with an increase in public expenditure, especially in Germany. These expenses report a desire to stimulate growth and attract investors’ attention.

However, officials warn against suddenly downloading the dollar and worry about destabilizing the global financial system. A cautious and balanced transition is essential to maintain stability around the world.

Currently, Euro is the second most widely used currency in the world and represents about 20 % of world exchange reserves. For comparison, the US dollar has about 58 %.

Despite this interest, the latest ECB report shows that the international use of the euro remained mainly stable in 2024. This shows the difficulty of competing on the dollar on the world scene.

Commercial influence and geopolitical role of Europe

The strength of the euro largely depends on the role of Europe in the trade. The EU is the largest commercial group in the world. It is the main partner of 72 countries, which represents almost 40 % of the world economy.

Lagarde stressed that Europe should use this position by looking for new trade agreements to expand the scope of the euro. She added that investors’ trust largely depends on trust in the political and economic stability of the currency. Therefore, the region must strengthen this aspect.

President ECB emphasized the need for a stronger economic foundation if the euro wants to gain more global influence. Although the debt of Europe in the United States in the United States has noted that growth within the EU remains slow and unevenly.

Another problem is the limited offer of safe and high quality assets for investors that disadvantage the euro.

To remain competitive and maintain its influence, he said that Europe must complete its uniform market and create a single capital market. Reduction of bureaucracy and encouraging investments in cross guarantee will be useful.

She added that Europe should also support important industries such as green and defensive technology with coordinated policies. Shared financing from areas such as defense could also create safer assets.

In order to obtain the Euro on the basis of a position, Europe must take decisive measures by completing a single market by reducing regulatory fees and building the robust Union of trade union. Strategic industries such as green technologies and defense should be supported by coordinated EU scale policies. Common financing of public goods such as defense could create safer assets.

Christine Lagarde, President of the European Central Bank

Institutional strength and reform of management

In addition, Lagarde places great emphasis on institutional integrity. She said that the international attraction of the currency depends not only on its economic performance, but also on the robustness of systems that support it.

President ECB acknowledged that the complex decision -EU production can be difficult to understand from outside. She then proposed reforms to speed up the decision. She noted:

To further emphasize these benefits, we must reform the institutional structure of Europe. The individual veto should no longer be able to prevent the other 26 Member States from the collective interests. More qualified voices in most critical fields would allow Europe to speak in one voice.

Lagarde’s vision for a stronger Europe and a stronger euro could have a positive impact on the European cryptocurrency sector. Here is how his accent in the field of trade, economy and institutions could support the growth of crypto.

• Reinforced euro supported by solid commercial links can strengthen the trust of investors that could expand to crypto markets.
• Finalization of the single market and the unification of capital markets could facilitate the expansion of crypto companies throughout Europe.
• Increased legal and institutional stability would attract more investors to regulated crypto products.

A change in the complex regulations of Europe could therefore breathe new momentum on both traditional financial and crypto, which soothes concerns that the region can be exceeded in the technology it once led – observation of Catrion Kellas, legal manager in Franklin Templeton.

IFEOLowa O.

IFOLOWA specializes in writing and marketing Web3, with more than 5 years of experience in creating bright and strategic content. In addition, it trades in crypt and is qualified in performing technical, basic and chains.

Renunciation

The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.