France urges more euro-pegged stablecoins to reduce US dollar dominance
France’s finance minister Roland Lescure urged faster growth of euro-pegged stablecoins, saying Europe’s current share is “not satisfactory” versus dollar-pegged tokens. Speaking in Paris, he backed EU banks exploring tokenised deposits as a way to scale euro stablecoin liquidity.
The push comes as stablecoins expand rapidly in general: the sector’s market cap topped $300B in Dec 2025 and on-chain activity repeatedly exceeded $1T during 2025. Still, the article cited evidence that 98% of stablecoins are dollar-pegged, even though much trading activity occurs outside the US—highlighting Europe’s reliance on USDT and USDC.
Regulators are also tightening focus. BIS research warned that using stablecoins for settlement could increase “stablecoinization” and “dollarization” within parts of the EU payments system if risks aren’t controlled. Banque de France official Denis Beau echoed the need for oversight.
On the execution side, nine major European banks launched plans (Sep 2025) for a MiCAR-compliant euro-denominated stablecoin, aiming to create a trusted European payments standard. Lescure also supported the broader EU path, including the ECB’s digital euro concept, discussed with an ambitious around-2029 wallet timeline.
For traders, euro-pegged stablecoins could become a medium-term catalyst for EU-based liquidity and regulatory sentiment, but near-term price impact is likely limited unless issuance accelerates.
Neutral
Near-term impact on the traded euro-pegged stablecoins is likely limited because the market is still dominated by dollar stablecoins, and the reported euro stablecoin initiatives are more about planning/acceleration than immediate issuance. However, Lescure’s call, BIS/Bank of France oversight concerns, and the Sep 2025 bank pilot (MiCAR-compliant euro stablecoin) can shift regulatory and liquidity expectations for EU-native euro tokens over time. Traders may see more medium-term positioning around euro stablecoin-related liquidity and headline-driven sentiment, but without faster issuance the immediate price effect should remain muted.