What to Know
- Roland Lescure says Europe needs more euro-based stablecoins as dollar-backed tokens dominate the market.
- Major banks like ING, UniCredit, and BNP Paribas plan a euro stablecoin launch by 2026.
- Tether leads with $185B+ supply, while euro stablecoins remain far smaller, showing a big gap.
Europe is stepping up efforts to strengthen its position in the digital money space, with France leading the charge. French Finance Minister Roland Lescure has called on European banks to accelerate the development of euro-based stablecoins, warning that the current gap between euro and dollar-backed tokens is a growing concern.
Europe Wants More Euro-Based Stablecoins
Speaking at a crypto conference in Paris, Lescure said that the low presence of euro-backed stablecoins compared to dollar ones is “not satisfactory.” He stressed that Europe needs to act quickly to stay competitive in the global financial system.
Stablecoins are cryptocurrencies designed to maintain a steady value by being tied to traditional currencies like the euro or the U.S. dollar. They are widely used for payments, trading, and transferring money across borders.
Right now, dollar-backed stablecoins dominate the market. This raises concerns in Europe about relying too much on foreign digital currencies, especially for payments and financial infrastructure. “That is what we need and that is what we want,” Lescure said, referring to ongoing efforts to develop euro-based alternatives.
Banks Step In With New Plans
European banks are already taking steps in this direction. A group of major lenders, including ING, UniCredit, and BNP Paribas, have joined forces to launch a euro-pegged stablecoin. The project is expected to go live in the second half of 2026. It aims to provide a strong alternative to dollar-backed tokens and reduce dependence on U.S.-led digital payment systems.
Lescure also encouraged banks to explore “tokenised deposits,” which are digital versions of bank deposits that can run on blockchain systems. These could make payments faster and more efficient while staying within the traditional banking system. “I also strongly encourage banks to further explore the launch of tokenised deposits,” he said.
The difference between euro and dollar stablecoins remains massive. The world’s largest stablecoin, Tether, has more than $185 billion worth of tokens in circulation. In comparison, a euro-based stablecoin launched by Société Générale in 2023 has only about 107 million euros in circulation.
France Pushes for Stronger Crypto Rules
At the same time, France is tightening its regulatory approach to crypto. Officials are pushing for stricter limits on stablecoins that are not linked to the euro under the European Union’s MiCA rules.
Denis Beau, First Deputy Governor of the Bank of France, said MiCA may not be enough to handle the risks of widespread stablecoin use, especially those issued outside Europe. “MiCA only partially addresses the risks posed by changes in the sector,” he said, calling for stronger measures.
France is also considering new reporting requirements for crypto users. A proposal would require individuals to report self-hosted crypto wallets if their value exceeds 5,000 euros annually. While the plan has faced some opposition, it reflects a broader push for transparency and oversight.
These developments come at a time of broader global uncertainty. Discussions around financial independence are happening alongside geopolitical tensions. For example, Hanno Pevkur recently said Europe is not yet ready to defend itself fully without U.S. support, highlighting the region’s dependence in other areas as well. This wider context adds urgency to Europe’s push for financial independence.
What’s Next
France’s message is clear: Europe must move faster in building its own stablecoin ecosystem or risk falling behind. With banks working on new projects and regulators tightening rules, the region is trying to strike a balance between innovation and control.
If successful, euro-based stablecoins could play a bigger role in global finance and reduce reliance on dollar-backed systems. But for now, the gap remains large, and the race is still on.
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