François Villeroy de Galhau: Disruptions in the international monetary landscape - threats or promises?
Speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at the G7 International Monetary System (IMS) Conference, Paris, 6 January 2026.
The views expressed in this speech are those of the speaker and not the view of the BIS.
Dear and honored guests, Ladies and Gentlemen,
I would like to start by extending, on behalf of the Banque de France, our warmest wishes to you and your loved ones. This year, France is taking on the G7 Presidency, with a number of priorities – addressing global imbalances but also delivering practical progress on six financial stability items: cross-border payments, NBFI, cybersecurity, AI, quantum technology and climate-related risks. It is therefore my pleasure to introduce today's stimulating sessions dedicated to the challenges of digital innovation and the consequences for the International Monetary System (IMS).
Let me first outline two major disruptions, a fast-moving technological one and a slow-moving geopolitical one – to quote Governor Panetta's recent speech – (1), before sharing with you a triangle of three objectives, three "S's" that should guide us in the transition to a new global landscape for payments (2).
1. Two major disruptions are affecting the international monetary landscape
1.1. A technological disruption
The first disruption is technological: financial innovations have the potential to reshape the IMS. Among them, tokenisation is accelerating end-to-end transaction execution and reducing costs, notably through "smart contracts". It can revolutionise cross-border payments and possibly domestic payments.
Tokenisation could affect the IMS through two opposite forces. On the one hand, it may reinforce the US dollar's centrality with a potentially rapid development of stablecoins in USD held outside the United States. Supported by a resilient US financial sector and actively promoted by the US administration, stablecoins – 99% USD-backed so far – could reach a market capitalisation of between USD 500 billion and USD 2 trillion by 2028 according to some projections.