The deputy governor of the Banque de France, Denis Beau, has publicly broken ranks with European Central Bank President Christine Lagarde over the pace of developing euro-denominated stablecoins. Speaking on May 12, Beau called for immediate action from both public and private sectors to create tokenized euro-based money, warning that dollar-pegged stablecoins threaten Europe’s monetary sovereignty. He stressed that dollar tokens from issuers like Tether and Circle dominate 98% of the stablecoin market, posing a risk of digital dollarization in European payment systems.
Beau’s position contrasts sharply with Lagarde’s cautious approach, which favors waiting for a state-issued digital euro expected around 2029. While Lagarde has repeatedly warned that private stablecoins could amplify financial vulnerabilities, Beau argues that private-sector solutions are essential for Europe’s economic development now, without delaying for a retail central bank digital currency. He pointed to the risk of digital dollarization at the settlement infrastructure level if euro alternatives lack sufficient liquidity.
Beau’s stance aligns with Qivalis, a consortium of 12 major European banks including BBVA, ING, UniCredit, and BNP Paribas, which plans to launch a euro-pegged stablecoin in the second half of 2026. He also highlighted the Eurosystem’s Pontes project, set to deploy wholesale central bank money in tokenized form by the end of 2026. Beau described this as a foundation rather than a complete solution, noting that a first deliverable will be available by year-end.
The internal divide within the ECB reflects a broader strategic disagreement across European institutions. While Lagarde has emphasized financial stability risks from both dollar and euro stablecoins, Beau and French Finance Minister Roland Lescure have pushed for aggressive private-sector development of euro stablecoins as a near-term countermeasure. The German central bank has also signaled openness to euro-denominated stablecoins to improve cross-border payment efficiency. The gap between the ECB’s retail CBDC timeline and the immediate commercial pressure from dollar stablecoins is giving central bankers across Europe more reason to support private alternatives rather than waiting for a state-led solution.