The Central Bank of France warns about the existential threat of private stablecoin dominance

Source: Yellow Original Title: The Bank of France warns about the existential threat of private stablecoin dominance

Original Link: https://yellow.com/es/news/el-banco-central-de-francia-alerta-sobre-la-amenaza-existencial-del-dominio-de-las-stablecoins-privadas Central banks risk losing control over money if privately backed dollar stablecoins become the dominant form of tokenized financing, warned the governor of the Bank of France on Wednesday, as global regulators and crypto executives publicly divide over who should anchor the next phase of the financial system.

Speaking on a panel at the World Economic Forum, François Villeroy de Galhau presented tokenization not as a technical upgrade, but as a matter of sovereignty, especially for emerging economies that could face accelerated dollarization if private digital currencies surpass public money.

Monetary sovereignty versus private issuance

Villeroy de Galhau said that tokenization will reduce costs and improve settlement through delivery versus payment mechanisms, but warned that money remains a public function tied to democratic responsibility.

He argued that a future dominated by private issuers, largely based in the United States, would raise serious concerns for countries losing monetary autonomy.

To counteract this risk, he noted that Europe is prioritizing wholesale central bank digital currency infrastructure, confirming a pilot this year aimed at financial market settlement rather than retail payments.

Banks as trust infrastructure

Also present in the debate, Bill Winters, CEO of Standard Chartered PLC, stated that most assets will eventually be settled digitally, but the path will depend on regulation in over 60 jurisdictions.

He presented banks as trusted custodians of both instruments and infrastructure, arguing that it is unlikely that states will relinquish control of financial “pipes.”

Winters said digital tokens will function either as a medium of exchange, where yield is secondary, or as a store of value, where returns matter, especially in developing economies with weak local currencies.

Market infrastructure and capital markets

Valérie Urbain, CEO of Euroclear, described tokenization as an evolution of securities markets, citing pilot projects involving bonds, commercial paper, and collateral.

She pointed out that financial market infrastructure will be key to interoperability between tokenized assets and traditional finance, and argued that easier access and faster settlement could help mobilize Europe’s large savings toward investment.

Crypto advocates for access and competition

The founder of a major crypto platform, Brian Armstrong, stated that tokenization broadens access to investment for billions of people without brokerage services, and described stablecoins as the first successful example.

He argued that crypto assets offer an alternative store of value when trust in fiat currencies weakens and warned against regulation that would prevent crypto companies from competing on equal footing with banks.

Brad Garlinghouse, from a blockchain platform, said it is unlikely that governments will relinquish monetary control, presenting tokenization as a bridge between traditional finance and blockchain, rather than a substitute.

He emphasized that regulatory clarity is essential and that tokenization should deliver measurable improvements in efficiency or transparency.