The deputy governor of France’s central bank on Tuesday called for the “mobilization of all relevant European actors, public and private,” to develop token money.
Beau’s comments are in stark contrast to European Central Bank (ECB) President Christine Lagarde’s recent speech in which she said that “the case for promoting euro-denominated stablecoins is much weaker than it appears.”
While Lagarde described the $310 billion privately issued stablecoin market, currently dominated by Tether’s USDT and Circle’s USDC, as instruments that “risk amplifying the vulnerabilities we are trying to overcome,” Beau told CoinDesk that private sector solutions are necessary for the region’s economic development.
However, the different opinions reveal a growing concern in Europe about “digital dollarization.” With the stablecoin sector expected to reach trillions of dollars in the coming years, the lack of euro-pegged currencies could force European capital to turn to dollar-backed assets, potentially eroding the euro’s global influence and monetary sovereignty.
“To ensure robust development of tokenized finance in Europe, its payment and settlement asset pillar should be in euros and build on the solid foundation of our current two-tier monetary system,” Beau said in an interview with CoinDesk.
The central banker outlined a “triple aim” for the region, requiring the European Union (EU) to adapt central bank monetary services, develop “pan-European solutions in tokenized private money issued by regulated financial institutions” and strengthen the bloc’s Crypto Asset Markets Regulation (MiCA).
Beau’s stance aligns with Qivalis
Beau’s stance aligns with Qivalis, a group of 12 large European banks, including ING, BBVA and BNP Paribas, which plans to launch a private digital euro later this year.
Qivalis CEO Jan-Oliver Sell recently told CoinDesk that without a liquid on-chain euro, “the only alternative is the US dollar,” which he described as a “risk to Europe’s financial and digital sovereignty.”
Lagarde agrees with the need for digital asset alternatives to dollar-pegged stablecoins, warning that USDT and USDC pose “financial stability risks” for Europe and could “transmit stress to underlying asset markets during periods of turbulence.”
However, while Beau advocates for an immediate mobilization of the private sector to capture market share, Lagarde is in favor of a central bank digital euro, which in previous statements she suggested would be ready by 2029.
Beau noted that the Eurosystem is already taking steps to offer native settlement options. “A first result will be available at the end of this year, with the opening of our wholesale central bank money service in tokenized form,” he said, referring to projects such as Pontes.
The opposing views between Lagarde and Beau come as US dollar-pegged tokens make up 98% of the stablecoin market.
While Lagarde maintains that stablecoins “do not confer the unconditional finality that central money confers,” Beau maintains that public and private efforts “must complement and support each other” to ensure the euro remains a viable settlement instrument in an increasingly symbolic global economy.
