European Central Bank President Christine Lagarde has highlighted the risk of Europe losing its payment sovereignty due to the dominance of dollar-denominated stablecoins and foreign networks. Speaking at an ECB meeting, Lagarde noted the absence of a pan-European card network and the reliance on international card organizations, which handle over 60% of European card payments. She emphasized that a digital euro, as legal tender, could address these challenges and ensure secure expansion of tokenized finance. Lagarde stressed the necessity of central bank money for large-scale issuance of digital assets, as market participants require central bank settlement infrastructure. The ECB is progressing with initiatives like Pontes and Appia to connect with systems such as India's UPI and Southeast Asia's Nexus. Lagarde warned that individual member states creating their own legal frameworks could lead to fragmentation, turning the issue into a geopolitical and sovereignty challenge.