Banque de France Deputy Governor Backs Private Digital Euro, Diverging From Lagarde
Summary
- Denis Beau said Europe needs a private-sector digital euro and euro-based tokenized asset infrastructure.
- He said euro-centered payments and settlement infrastructure is needed for the healthy growth of European tokenized finance as dollar-based stablecoins account for about 98%% of the overall market.
- Beau called for modernized central bank money services, a pan-European private tokenized currency, and stronger MiCA rules, while Lagarde said she prefers a CBDC-based digital euro.
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A senior Banque de France official has called for Europe to develop a private-sector digital euro, in a stance that contrasts with European Central Bank President Christine Lagarde’s more cautious view on private stablecoins.
Denis Beau, first deputy governor of the Banque de France, said Europe’s public and private sectors should both participate in developing tokenized money, CoinDesk reported on May 12.
He argued that Europe needs euro-based tokenized asset infrastructure to counter the growing influence of dollar-denominated stablecoins.
The comments come as concerns mount in Europe over “digital dollarization.”
Most of the global stablecoin market is dominated by dollar-based assets such as Tether’s USDT and USD Coin, or USDC. Dollar-pegged stablecoins account for about 98% of the market, according to CoinDesk.
Beau said payments and settlement infrastructure also needs to be centered on the euro for tokenized finance in Europe to develop on a sound footing.
To achieve that, he called for modernizing central bank money services, developing a pan-European private tokenized currency through regulated financial institutions, and strengthening the European Union’s Markets in Crypto-Assets regulation, or MiCA.
His position is also in line with Qivalis, a private digital euro project being pursued by major European banks.
Twelve European banks, including ING, BBVA and BNP Paribas, are reportedly working to launch a private digital euro this year.
Lagarde, by contrast, has maintained a more skeptical view of privately issued stablecoins.
In a recent speech, she said the need for a euro-based stablecoin has been overstated and reaffirmed her preference for a central bank digital currency, or CBDC-based digital euro.
The ECB’s digital euro project is slated for introduction around 2029.
Beau said public- and private-sector efforts should complement each other so the euro can retain its status as a core means of payment in the global tokenized economy.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
