France's central bank deputy governor, Denis Beau, has called for European public and private sectors to collaborate on creating tokenized euro money. According to NS3.AI, this initiative comes as U.S. dollar-pegged tokens dominate 98% of the stablecoin market. European Central Bank President Christine Lagarde expressed skepticism, noting that the case for euro-denominated stablecoins might be weaker than perceived. She also warned that the $310 billion stablecoin market could heighten financial vulnerabilities.
Beau emphasized the need for Europe to adapt central bank money services, develop pan-European tokenized private money through regulated financial institutions, and enhance the Markets in Crypto-Assets (MiCA) regulation. He announced that a tokenized wholesale central bank money service is expected to launch by the end of this year.