The deputy governor of the Central Bank of France called on Tuesday for “the mobilization of all European stakeholders concerned, public and private”, to develop the symbolic currency.
Beau’s comments stand 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 seems.”
While Lagarde described the privately issued stablecoin market, currently dominated by Tether’s USDT and Circle’s $310 billion 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.
The different points of view, however, reveal a growing concern in Europe about “digital dollarization”. With the stablecoin industry expected to reach trillions of dollars in the coming years, the lack of euro-pegged currencies could force European capital to shift to dollar-backed assets, potentially eroding the euro’s global influence and monetary sovereignty.
“To ensure healthy development of token finance in Europe, its pillar of payment and settlement assets should be in euros and build on the solid foundations of our current two-tier monetary system,” Beau said in an interview with CoinDesk.
The central banker outlined a “triple aim” for the region, which requires the European Union (EU) to adapt central bank monetary services, develop “pan-European solutions for tokenized private money issued by regulated financial institutions” and strengthen regulation of the bloc’s crypto-asset markets (MiCA).
Beau’s position aligns with Qivalis
Beau’s position aligns with that of Qivalis, a group of 12 major European banks, including ING, BBVA and BNP Paribas, which plans to launch a private digital euro later this year.
Jan-Oliver Sell, CEO of Qivalis, 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 immediate mobilization of the private sector to capture market share, Lagarde favors a central bank digital euro, which in previous statements has suggested would be ready by 2029.
Beau noted that the Eurosystem is already working to provide settlement options for natives. “A first deliverable will be available by the end of this year, with the opening of our wholesale central bank money service in token 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 argues that stablecoins “do not confer the unconditional finality that central currency confers,” Beau maintains 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.
