ECB Succession, Digital Euro in Focus as Lagarde May Exit
European Central Bank (ECB) President Christine Lagarde is considering stepping down before her eight-year term ends in October 2027, the Financial Times reported, citing a person familiar with the matter. Lagarde, who began her term in November 2019, is reportedly weighing an early departure ahead of France’s April 2027 presidential election so that outgoing President Emmanuel Macron and German Chancellor Friedrich Merz can agree on a successor, according to the FT on Wednesday.
An ECB spokesperson said Lagarde remains fully focused on her mandate and has not made any decision regarding the conclusion of her term.
ECB faces digital euro rollout and MiCA-era stablecoin oversight
Any early exit would come as the ECB advances its digital policy agenda. Under Lagarde’s leadership, the central bank has continued preparatory work on a digital euro and emphasized the need to address risks from privately issued digital money, including stablecoins, within the European Union’s Markets in Crypto-Assets (MiCA) framework.
ECB officials have warned that rapidly expanding stablecoins could pose risks to financial stability and monetary policy in the euro area, even with MiCA safeguards in place, and have advocated for a robust market in well‑regulated euro-denominated stablecoins that can compete with dollar-pegged tokens.
Lagarde has been a consistent critic of Bitcoin (BTC) and other crypto assets, calling them “highly speculative.” In a 2022 television interview, she said crypto is “worth nothing” and lacks underlying assets, a position she reiterated even as BTC neared record highs in November 2025.
A change in ECB leadership could influence how the institution communicates and prioritizes the digital euro, stablecoin supervision, and crypto-related payment arrangements, although the broader regulatory trajectory is determined at the EU level.
Potential successors broadly cautious on crypto
Economists surveyed by the Financial Times in December identified Spain’s former central bank governor Pablo Hernández de Cos and Dutch central bank governor Klaas Knot as leading candidates to succeed Lagarde, with ECB Executive Board member Isabel Schnabel and Bundesbank President Joachim Nagel also seen as contenders.
All four have taken cautious positions on crypto. In past remarks, Hernández de Cos has characterized crypto assets and stablecoins as financial stability risks requiring strong regulation and supervision, while Knot has called for a comprehensive global regulatory framework for crypto and stablecoins.
Nagel has linked the digital euro initiative to protecting European monetary and financial sovereignty and has described Bitcoin as a “digital tulip” that is “anything but transparent,” cautioning against treating it as a reserve asset.
Schnabel has previously described Bitcoin as a “speculative asset without any recognizable fundamental value.”
Digital euro timetable depends on EU legislation
The digital euro project still requires approval from EU lawmakers, while the ECB has entered a technical preparation phase and is pursuing collaborations to ensure broad accessibility.
Once the legal framework is finalized, potentially in 2026, a pilot phase could start as early as 2027, with the Eurosystem aiming to be ready for an initial issuance around 2029.
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