Lagarde to step down early as ECB President? Foreign media list four major candidates—what impact could this have on the industry?

Foreign media reports suggest Lagarde is considering an early resignation, potentially loosening the European Central Bank’s tough stance on cryptocurrencies, with the digital euro and MiCA II becoming key factors.

Lagarde’s Rumored Early Departure: The ECB’s “Defense Great Wall” Faces Change

According to reports from The Financial Times and Reuters, the current President of the European Central Bank (ECB), Christine Lagarde, is contemplating stepping down before her term officially ends in October 2027. This potential major personnel change is said to be coordinated with the political arrangements of French President Emmanuel Macron and German Chancellor Merkel’s successor, Friedrich Merz, to finalize her successor before the 2027 French elections. Although ECB spokespersons deny these reports and emphasize that Lagarde remains fully focused on her current duties, market speculation about when this long-standing “Iron Lady” of a hardline stance on cryptocurrencies will leave has sparked widespread discussion.

Image source: Reuters European Central Bank (ECB) President Christine Lagarde

During her seven years in power, Lagarde has been seen as Europe’s “Great Wall” against private cryptocurrencies. She has repeatedly issued stern comments on Bitcoin ($BTC), even in November 2025 when Bitcoin approached its all-time high, maintaining her view that it is “worthless.”

For Lagarde, crypto assets are merely speculative tools and cannot compare to traditional fiat currencies. Her core policy focus has always been on protecting the sovereignty of the euro, channeling resources into official digital euro projects as a moat against private digital currencies. If she departs early, the ECB’s previously almost stubborn “defensive posture” may soften, leaving a glimmer of hope for Web3 development in Europe.

Digital Euro Progress Enters Critical Phase: Can MiCA II Prevent Talent Drain?

At the same time as Lagarde’s departure rumors, Europe is at a crucial turning point in digital currency development. Piero Cipollone, a member of the ECB Executive Board, confirmed that the EU legislation is expected to pass regulations for the digital euro by 2026. If on schedule, a 12-month technical testing phase will begin in late 2027, with the first digital euro issuance planned for 2029. This means the next ECB president will inherit this highly controversial and large-scale project. Meanwhile, the EU’s Markets in Crypto-Assets Regulation (MiCA) is fully operational, but regulatory focus has shifted toward the more challenging “MiCA II.”

Image source: Bloomberg ECB Executive Board Member Piero Cipollone

The core conflict of MiCA II revolves around how to regulate decentralized finance (DeFi) and staking, key pillars of the Web3 economy. Lagarde’s past stance favored closing all potential regulatory loopholes, bringing these decentralized activities under strict oversight. However, such an overly tough regulatory approach has led to a significant brain drain in Europe’s Web3 industry.

Data shows that while crypto investments have surged in Dubai, Singapore, and other regions, Europe’s fundraising has stagnated. Many European startups are fleeing to the US or Middle East seeking clearer rules and more friendly tax environments. Industry observers worry that if her successor continues Lagarde’s heavy-handed approach, Europe risks becoming a “digital museum,” falling behind in the global digital economy race.

Four Potential Successors Emerge: Who Will Be the New Ally for Web3 Industry?

The market is currently focused on four potential candidates, each with a different attitude toward cryptocurrencies.

1. Klaas Knot, former Dutch Central Bank Governor — categorized as a “Pragmatic Hawk.” While emphasizing risk control, he advocates for “same activity, same risk” principles rather than outright bans.
2. Pablo Hernández de Cos, current BIS General Manager and former Spanish Central Bank President — seen as a “tech-oriented innovator,” with deep research into distributed ledger technology (DLT), likely to push for integrating DLT into traditional banking systems.
3. Joachim Nagel, President of the German Bundesbank — regarded as a “Sovereignty Guardian,” despite sarcastically calling Bitcoin a “digital tulip,” he is enthusiastic about developing euro-pegged stablecoins to counter US dollar dominance.
4. Isabel Schnabel, member of the ECB Executive Board — representing the academic camp, she values market efficiency and competitiveness. If she takes the helm, she might adopt a more open stance to foster a Web3-friendly environment to maintain the EU’s global standing.

Image source: Crypto City The four candidates for ECB President: Klaas Knot, Pablo Hernández de Cos, Joachim Nagel, Isabel Schnabel

The policy inclinations of these four candidates will directly influence Europe’s crypto regulations’ “rigidity” or “resilience” over the next decade.

Geopolitical Stability Coin Wars: ECB’s Strategic Shift?

Beyond internal personnel changes, external geopolitical pressures are prompting the ECB to reconsider its strategy. The US passed the GENIUS Act in 2025, providing a clear regulatory framework for US dollar stablecoins, delivering a heavy blow to the euro. Lagarde has historically been hostile toward private stablecoins, believing only central bank digital currencies (CBDCs) like the digital euro are the right path.

However, recent signals from Nagel suggest that regulated private euro-stablecoins could be an important tool for maintaining Europe’s “monetary independence.” This indicates that the ECB may be shifting from a “CBDC-only” stance toward a more diversified digital currency ecosystem.

Under Lagarde, cryptocurrencies were seen as speculative nuisances; but under her successor, regulation should evolve from mere defense to a bridge for innovation. Europe already has a comprehensive MiCA legal framework but lacks the momentum to advance the industry. Future policies may shift from simply “protecting consumers” to “enhancing industry competitiveness.”

If the new leader embraces a public-private hybrid model of digital assets, allowing euro-stablecoins and digital euros to operate in a controlled environment, Europe could regain its leadership in digital finance. Lagarde’s departure is not just a personnel change but a pivotal moment determining whether Europe’s digital economy will open up or close down.