French Finance Minister Roland Lescure has called for an increase in euro-denominated stablecoins, marking a significant policy shift for the French government and its central bank. Lescure’s endorsement of Qivalis—a consortium of 12 European banks, including major players like BBVA and BNP Paribas—aims to launch a euro-pegged stablecoin by late 2026 to challenge the U.S. dominance in digital payments. This move contrasts sharply with the previous French and EU skepticism towards private stablecoins, which were deemed a threat to monetary sovereignty.
This pivot towards stablecoins could reshape the European financial landscape, particularly as Lescure emphasizes the need for tokenized deposits among EU banks. The relatively low volume of euro-pegged stablecoins compared to their dollar counterparts has raised concerns, prompting this renewed focus on enhancing Europe’s digital payment capabilities.
For market professionals, this development signals a potential shift in the competitive dynamics of digital currencies, suggesting that European banks may soon play a more prominent role in the stablecoin arena, impacting both investment strategies and regulatory landscapes.
Source: coindesk.com