French Central Banker Sounds Alarm: U.S. Stablecoin Push Threatens European Sovereignty!

"Without a Digital Euro, We're Screwed!" Warns Banque de France Deputy Governor

Holy crypto, Batman! A top French central banker just dropped a bombshell: U.S. policy shifts promoting dollar-backed stablecoins could totally wreck Europe's monetary sovereignty if they don't get a digital euro up and running, pronto!

Denis Beau, the first deputy governor of the Banque de France, isn't messing around. He's calling out the Trump administration's recent executive order as a major threat to Europe's financial independence. "Concrete adverse consequences" are on the horizon, folks, and Beau's demanding urgent action on a digital euro to fight back.

Get this: in a speech last week, Beau tore into Trump's late January order. It bans any work on a new central bank digital currency, pushes dollar-backed stablecoins like crazy, and tells citizens and businesses to jump on public blockchains. Yikes!

Beau's warning is clear: "Without a central bank money-based payment solution," private, non-European players could take over tokenized finance. And we're not just talking small potatoes here.

"If the tokenisation of financial assets were to gather pace, the lack of a central bank money payment solution in euro might therefore threaten the role of central bank money as the anchor of the euro area's monetary architecture, with concrete adverse consequences."

Denis Beau

The Banque de France's first deputy governor isn't pulling any punches. He's linking this trend to a whole mess of problems: more counterparty and liquidity risks, a fragmented settlement landscape, and ultimately a "loss of sovereignty and a weakening of financial stability."

And get this: Beau says Trump's new political direction "reinforces the need for Europe to preserve its monetary sovereignty, which means developing its payment sovereignty." He's also pointing out that Apple Pay and Google Pay are already dominating Europe, while European payment systems are a hot mess, losing ground fast.