Deputy Head of the Bank of France, Denis Beau, expresses the opinion that the creation of central bank digital currencies should take into account the tokenization of assets. Otherwise, there is a risk that people will prefer to use stablecoins.
Beau notes that currently, the share of tokenized assets in the overall volume of financial assets is small, but this may change in the near future. If the central bank does not adapt its digital currency to interact with tokenized assets and does not allow their use in transactions, market participants may turn to stablecoins as a convenient alternative.
Beau is confident that asset tokenization using distributed ledger technology (DLT) will provide a more transparent tracking of trade transactions. However, successful implementation of this idea requires support from central banks and the development of relevant regulations by lawmakers. According to Beau, tokenization will streamline and accelerate the trading of digital assets and open up new possibilities, such as fractional ownership of assets.
He emphasizes that the development of innovative projects can be stimulated through the establishment of a trust system, and the success of tokenization depends on constructive regulation rather than reacting only to crises. In his view, state-backed cryptocurrencies can improve cross-border payments and should be a priority for central banks. Recently, the Bank of France, in collaboration with other central banks and the Bank for International Settlements (BIS), conducted tests of wholesale central bank digital currencies for cross-border trade and settlements. Previously, Denis Beau called on lawmakers to create clear legal norms for regulating decentralized finance (DeFi).