France's central bank deputy governor Denis Beau called for the mobilization of all relevant European players, public and private, to develop tokenized money, diverging sharply from ECB President Christine Lagarde's stance. Lagarde recently argued that the case for promoting euro-denominated stablecoins is far weaker than it appears, describing the $310 billion privately-issued stablecoin market as instruments that risk amplifying vulnerabilities. Beau, however, told CoinDesk that private sector solutions are necessary for the region's economic development. The differing views reveal growing concern over 'digital dollarization,' as a lack of euro-pegged currencies could force European capital into dollar-backed assets, eroding the euro's global influence. Beau outlined a 'triple objective' for the EU: adapting central bank money services, developing pan-European solutions in tokenized private money from regulated institutions, and strengthening MiCA. His stance aligns with Qivalis, a group of 12 major European banks planning to launch a private digital euro. Lagarde favors a central bank digital euro, which she suggested would be ready by 2029, while Beau advocates for immediate private-sector mobilization. The Eurosystem is already moving to provide native settlement options, with a wholesale central bank money service in tokenized form becoming available by year-end.

Key facts

• French central banker Beau calls for private sector involvement in digital euro, diverging from Lagarde.
• Lagarde warns stablecoins risk amplifying vulnerabilities, favoring central bank digital euro by 2029.
• Beau's triple objective includes adapting central bank money, developing private tokenized money, and strengthening MiCA.
• Qivalis, a group of 12 European banks, plans to launch a private digital euro later this year.
• Eurosystem will offer wholesale central bank money in tokenized form by end of 2026.