The Banque de France opposes Christine Lagarde on the digital euro!

The digital euro is no longer just a technological subject, because it is becoming a terrain of political confrontation at the top of European institutions. By calling for increased involvement of the private sector in the tokenization of the euro, Denis Beau, deputy governor of the Banque de France, distances himself from Christine Lagarde and the cautious line of the ECB. Behind this disagreement lies a strategic battle around European monetary sovereignty, while dollar-backed stablecoins continue to dominate global digital finance.

Denis Beau distances himself from Christine Lagarde's line

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

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

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

• Christine Lagarde said euro-backed stablecoins were “much more fragile than it seems” ;
• The President of the ECB 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, on the contrary, defends 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 will divert deposits from traditional banks and weaken the transmission of European monetary policy. Conversely, the Banque de France considers that a hybrid ecosystem combining digital euro and private instruments could accelerate the integration of the euro into global tokenized finance.

France accelerates its strategy in the face of the hegemony of dollar stablecoins

Beyond institutional tensions, Paris seeks above all to respond to an imbalance that has become massive in the asset tokenization market. Dollar-pegged stablecoins largely dominate the sector, with more than $185 billion in circulation for Tether. Conversely, European projects remain marginal. The euro stablecoin launched by Société Générale only represents around 107 million euros. This delay is increasingly worrying the French authorities, who see monetary tokenization as a strategic issue linked to the sovereignty of payments and European financial autonomy.

This line is also supported by several large European banks. Thus, ING, UniCredit and BNP Paribas were participating in work around a future euro stablecoin expected in the second half of 2026. French minister Roland Lescure also judged “unsatisfactory”the low weight of European stablecoins compared to the American giants. The position defended by Denis Beau is therefore part of a dynamic aimed at preventing the tokenized financial infrastructures of tomorrow from being entirely dominated by American players.

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