STABLECOINS | Europe Should Develop More Euro-Backed Stablecoins to Counter Dollar-Pegged Assets, Says French Finance Minister

The Finance Minister of France has called on Europe to develop more Euro-denominated stablecoins urging banks to step up efforts to counter the dominance of U.S. dollar-backed digital assets in global payments.

Speaking in pre-recorded remarks at a cryptocurrency conference in Paris, Finance Minister, Roland Lescure, said the relatively low volume of Euro-pegged stablecoins compared with dollar-based alternatives was “not satisfactory,” and encouraged banks to explore tokenised deposits.

Stablecoins, a type of cryptocurrency typically pegged to fiat currencies, are widely used in crypto markets but remain limited in mainstream payments. The sector is dominated by dollar-linked tokens, particularly those issued by Tether, which account for the bulk of global circulation.

Lescure backed a planned initiative by a group of European banks, including

• ING,
• UniCredit and
• BNP Paribas,

to launch a euro-pegged stablecoin in the second half of 2026, saying such efforts were needed to strengthen Europe’s position in digital finance.

European policymakers have increasingly voiced concern over reliance on non-European payment providers, especially amid strained relations with the United States, and are seeking to bolster financial sovereignty through digital assets and infrastructure.

French policymakers have been calling for stricter controls on stablecoin usage under the European Union’s Markets in Crypto-Assets (MiCA) framework, particularly targeting non-Euro-pegged tokens.

Denis Beau, First Deputy Governor of the Bank of France, has previously said the current MiCA rules may not go far enough in addressing risks tied to the growing adoption of stablecoins, especially those linked to the US dollar, which dominate the global market.

The European Central Bank is also working on a digital Euro, though progress has been slowed by political delays and resistance from parts of the banking sector. Lescure said a central bank digital currency should play a key role in Europe’s broader tokenisation strategy.

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