Central banks risk losing control over money if privately issued, dollar-backed stablecoins become the dominant form of tokenized finance, France’s central bank governor on Wednesday warned, as global policymakers and crypto executives publicly split over who should anchor the next phase of the financial system.
Speaking in a panel discussion at the World Economic Forum, governor** François Villeroy de Galhau** framed tokenization not as a technical upgrade but as a sovereignty issue, particularly for emerging economies that could face accelerated dollarization if private digital currencies outpace public money.
Monetary Sovereignty Versus Private Issuance
Villeroy de Galhau said tokenization will lower costs and improve settlement through delivery-versus-payment mechanisms, but cautioned that money remains a public function tied to democratic accountability.
He argued that a future dominated by private issuers, largely based in the U.S., would raise serious questions for countries that lose monetary autonomy.
To counter that risk, he said 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 Trusted Infrastructure
Also taking part in the discussion, Group Chief Executive of Standard Chartered PLC Bill Winters said most assets will ultimately settle in digital form, but the path will depend on regulation across more than 60 jurisdictions.
He positioned banks as trusted custodians of both instruments and infrastructure, arguing that sovereigns are unlikely to give up control of the 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, particularly in developing economies with weak local currencies.
Market Infrastructure And Capital Markets
Euroclear group CEO Valérie Urbain described tokenization as an evolution of securities markets, citing pilots involving bonds, commercial paper, and collateral.
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She said financial market infrastructure will be critical for interoperability between tokenized assets and traditional finance, and argued that easier access and faster settlement could help mobilize Europe’s large pool of savings into investment.
Crypto Argues Access And Competition
Coinbase founder Brian Armstrong said tokenization expands access to investment for billions of people without brokerage services, describing 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 restricts crypto firms from competing with banks on equal terms.
Ripple's (XRP) Brad Garlinghouse said governments are unlikely to surrender monetary control, framing tokenization as a bridge between traditional finance and blockchain rather than a replacement.
He argued that regulatory clarity is essential and that tokenization should deliver measurable efficiency or transparency gains.
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