Société Générale chairman: "Europe should actively embrace stablecoins"

The chairman of the major French bank Société Générale and former executive board member of the European Central Bank (ECB), Lorenzo Bini Smaghi, argued in a Financial Times (FT) op-ed on the 4th (local time) that "Europe should overcome its fear of stablecoins and actively embrace them."

He expressed concern, stating, "Europe is facing the risk of becoming increasingly marginalized in the digital finance ecosystem," and "currently, 99% of stablecoins worldwide are issued based on the US dollar, while the euro is hardly used in this emerging market."

He continued, "Although Europe has established MiCA—the world’s most comprehensive virtual asset (cryptocurrency) regulatory framework—Europe’s characteristic tendency for excessive risk aversion is stifling innovation," and criticized, "Several European banks still regard stablecoins as a risk factor and see them solely as low-value investment assets."

Chairman Smaghi emphasized, "Europe needs a bolder stablecoin strategy in order not to fall behind in global financial competition."