Europe Divided On Stablecoin Strategy

The digital euro is no longer just a technological subject, as it becomes a political battleground at the summit of European institutions. By calling for increased private sector involvement in the tokenization of the euro, Denis Beau, Deputy Governor of the Bank of France, distances himself from Christine Lagarde and the cautious line of the ECB. Behind this disagreement lies a strategic battle over European monetary sovereignty, as dollar-backed stablecoins continue to dominate global digital finance.

Denis Beau distances himself from Christine Lagarde’s line

During a speech, Denis Beau called for a “joint mobilization of public and private actors” around the tokenized euro, despite the risks identified by the ECB.

The Deputy Governor of the Bank of France believes that private actors must actively participate in the development of European digital monetary instruments, whether stablecoins or tokenized deposits. This stance contrasts with the caution shown by the European Central Bank in recent weeks.

The main points of friction between Paris and Frankfurt are already clear :

• Christine Lagarde stated that euro-backed stablecoins were “much more fragile than they appear” ;
• The ECB President believes that “if we want to strengthen the international attractiveness of the euro, stablecoins are not an effective solution” ;
• The ECB continues to favor an approach centered on the public digital euro ;
• Denis Beau advocates instead for a coexistence between public initiatives and tokenized private solutions ;
• European authorities remain marked by the USDC episode during the Silicon Valley Bank crisis.

Indeed, the ECB still fears that massive adoption of stablecoins could divert deposits from traditional banks and weaken the transmission of European monetary policy. Conversely, the Bank of France considers that a hybrid ecosystem mixing digital euro and private instruments could accelerate the integration of the euro into the global tokenized finance.

France accelerates its strategy against the hegemony of dollar stablecoins

Beyond institutional tensions, Paris is especially seeking to address a massive imbalance in the asset tokenization market. Dollar-indexed stablecoins largely dominate the sector, with over 185 billion dollars in circulation for Tether. In contrast, European projects remain marginal. The euro stablecoin launched by Société Générale represents only about 107 million euros. This delay increasingly worries French authorities, who see monetary tokenization as a strategic issue linked to payment sovereignty and European financial autonomy.

This approach is also supported by several major European banks. Thus, ING, UniCredit, and BNP Paribas were involved in work on a future euro stablecoin expected in the second half of 2026. French Minister Roland Lescure also deemed the low weight of European stablecoins compared to American giants as “unsatisfactory”. The position defended by Denis Beau thus fits into a dynamic aimed at preventing the tokenized financial infrastructures of tomorrow from being entirely dominated by American actors.

The debate now opening in Europe goes far beyond the crypto sphere. Behind stablecoins and the tokenized euro lies a battle for monetary influence that could redefine the financial balance of the continent in the coming years. Between regulatory caution and competitiveness imperative, European institutions will have to arbitrate between protecting the traditional banking system and adapting to an increasingly tokenized finance. The stance of the Bank of France already shows that within the monetary authorities themselves, the European consensus is beginning to crack.