The deputy governor of the Bank of France on Tuesday called for “the mobilization of all relevant European actors, public and private” to develop tokenized currencies.
Beau’s comments contrast with recent remarks from European Central Bank (ECB) President Christine Lagarde, in which she said “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 tools that “have the potential to amplify the vulnerabilities we are trying to overcome,” Beau told CoinDesk that private sector solutions are necessary for the region’s economic development.
However, differing views point to growing concerns in Europe about “digital dollarization.” With the stablecoin industry expected to grow into trillions of dollars in the coming years, the lack of a currency pegged to the euro could force European capital to shift to dollar-backed assets, potentially undermining the euro’s global influence and monetary sovereignty.
“To ensure the healthy development of tokenized finance in Europe, its payment and settlement asset backbone should be the euro and build on the solid foundations of our current two-tier currency system,” Bo told CoinDesk.
The central bank governor outlined a “triple aim” for the region, which calls for the European Union (EU) to adapt central bank monetary services, develop a “pan-European solution for tokenized private currencies issued by regulated financial institutions” and strengthen the EU’s Market Regulation in Crypto-Assets (MiCA).
Bo’s stance aligns with Chivallis
Beau’s position is consistent with Qivalis’s. Qivalis, a group of 12 major European banks including ING, BBVA and BNP Paribas, 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 option is the U.S. dollar,” which he described as a “risk to European financial and digital sovereignty.”
Lagarde agreed that digital assets are needed to replace U.S. dollar-pegged stablecoins, warning that USDT and USDC pose “financial stability risks” to Europe and could “transmit pressure on underlying asset markets during times of volatility.”
However, while the blogger advocated immediate mobilization of the private sector to capture market share, Lagarde favored a central bank digital euro, which she said in previous statements would be ready by 2029.
Bo pointed out that the Eurosystem has begun to offer local settlement options. “The first deliverables will be launched by the end of this year as we open wholesale central bank money services in a tokenized form,” he said, citing projects such as Pontes.
The views between Lagarde and Bo are diametrically opposed, as USD-pegged tokens account for 98% of the stablecoin market.
While Lagarde believes that stablecoins “do not confer the same unconditional finality as central currencies,” Beau insisted that public and private efforts “should complement and support each other” to ensure that the euro remains a viable settlement instrument in an increasingly tokenized global economy.
