The battle for the digital euro is heating up as central bankers clash over how to take on Tether

France's central bank deputy governor, Beau, has called for the involvement of both public and private European entities in developing tokenized money, a stance that sharply contrasts with European Central Bank (ECB) President Christine Lagarde's skepticism towards euro-denominated stablecoins. Lagarde has expressed concerns that privately issued stablecoins, like Tether and Circle, could amplify existing financial vulnerabilities. Beau, however, believes private sector solutions are crucial for Europe's economic development and to prevent "digital dollarization," where a lack of euro-pegged currencies could lead to capital flowing into dollar-backed assets, diminishing the euro's global influence. Beau's view aligns with Qivalis, a consortium of European banks planning to launch a private digital euro, who warn that without a liquid onchain euro, the U.S. dollar becomes the only alternative, posing a risk to Europe's financial and digital sovereignty. While both acknowledge the risks of dollar-pegged stablecoins, Beau advocates for immediate private sector action, whereas Lagarde favors a central bank digital euro, projected for 2029. Beau highlighted that the Eurosystem is already developing wholesale central bank money services in tokenized form, with a deliverable expected by year-end. This divergence in views occurs as U.S. dollar-pegged tokens dominate the stablecoin market, with Beau emphasizing that public and private efforts should be complementary to ensure the euro's viability in a tokenized global economy.

(Source：CoinDesk)