Société Générale Chairman “Europe, If Stablecoins Are Not Accepted, Digital Finance Will Fall Behind”

Lorenzo Bini Smaghi, chairman of French major bank Societe Generale and former executive board member of the European Central Bank (ECB), strongly argued for the need for Europe's acceptance of stablecoins.

In a Financial Times column on the 24th (local time), he stated, “Europe should abandon excessive caution toward stablecoins and actively embrace this new financial tool.” Chairman Smaghi pointed out, “99% of stablecoins circulating globally are issued based on the US dollar, and the euro has almost no presence.”

He referred to the comprehensive cryptocurrency regulation 'MiCA' prepared by the European Union, criticizing, “The institutional foundation is in place, but Europe's unique risk-averse tendency is blocking actual innovation spread.” He particularly pointed out that major European banks are still classifying stablecoins as 'risk assets' and hesitating to enter.

Chairman Smaghi warned, “If things continue like this, Europe could be excluded from the global digital financial ecosystem,” and said, “Without systematic investment in and regulatory acceptance of stablecoins, the international status of the euro may also be at risk in the future.”

He emphasized that both private and public institutions in Europe must more actively enter the digital asset ecosystem.