France's finance minister calls for more euro stablecoins in sign of government policy shift
TL;DR
France's finance minister calls for increased euro stablecoins and urges EU banks to explore tokenized deposits, indicating a policy shift. This comes as a response to the dominance of U.S. digital payments.
Key points
- France's finance minister calls for more euro stablecoins
- EU banks encouraged to explore tokenized deposits
- Group of 12 European banks plans euro-pegged stablecoin launch in 2026
- Aim to counter U.S. dominance in digital payments
- Current euro stablecoin volume is deemed unsatisfactory
Mentioned in this story
Europe needs more euro-issued stablecoins and banks across the European Union (EU) countries must explore tokenized deposits, French Finance Minister Roland Lescure said Friday, according to Reuters.
The statements signal a potential shift in stance within the French government and its central bank.
Lescure expressed support for Qivalis, a group of 12 European banks, including BBVA, ING, UniCredit and BNP Paribas, that are set to launch a euro-pegged stablecoin in the second half of 2026, in a move they hope will counter U.S. dominance in digital payments.
"That is what we need and that is what we want." Lescure said. "I also strongly encourage banks to further explore the launch of tokenised deposits."
He also said that the relatively small volume of euro-pegged stablecoins compared to dollar-pegged ones was "not satisfactory".
Former Finance Minister Bruno Le Maire spearheaded a strict regulatory stance against privately-issued fiat-pegged cryptocurrencies, saying they “had no place on European soil” and were a threat to “the sovereignty of nations.” And in 2023, La Maire was linked to a EU document revealing the European Commission’s plan to halt stablecoins from becoming widely used in place of fiat currency.
More recently, during a live confrontation with Coinbase CEO Brian Armstrong over stablecoins and yields, Bank of France Governor Francois Villeroy de Galhau warned that stablecoins and tokenized private money could accelerate what he framed as a political threat. “The first threat is privatization of money, and loss of monetary sovereignty,” he added.
Q&A
What did France's finance minister say about euro stablecoins?
France's finance minister, Roland Lescure, called for more euro-issued stablecoins and urged EU banks to explore tokenized deposits.
Which banks are involved in the euro-pegged stablecoin initiative?
The initiative involves a group of 12 European banks, including BBVA, ING, UniCredit, and BNP Paribas, set to launch a euro-pegged stablecoin in late 2026.
Why is there a push for euro stablecoins in Europe?
The push for euro stablecoins aims to counter U.S. dominance in digital payments and address the insufficient volume of euro-pegged stablecoins compared to dollar-pegged ones.
