France Urges Development of Tokenized Euro Amid Dominance of Dollar-Pegged Stablecoins

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.