TL;DR
France’s finance minister has urged European banks to move faster in developing euro-denominated stablecoins, warning that the region risks lagging behind in the global transition toward blockchain-based payments. Speaking at a crypto conference in Paris, he highlighted the dominance of USD-pegged tokens and noted that Europe’s financial system still depends heavily on external payment rails.
The euro stablecoin market remains significantly smaller than its dollar counterpart. USD-linked tokens have surpassed $300 billion in supply, led by major issuers such as Tether and Circle. In comparison, euro-pegged assets account for less than €1 billion, with projects like EURC and EURS capturing only a limited share of global liquidity.
This gap has drawn attention from policymakers who view stablecoins as a key component of future financial infrastructure. The minister expressed support for a joint initiative by ING, UniCredit, and BNP Paribas, which are preparing to launch a euro-pegged stablecoin in 2026. He also encouraged banks to explore tokenized deposits, seen as a regulated bridge between blockchain systems and traditional banking.
While policymakers push for faster development, adoption signals remain mixed. Research from RBC Capital Markets shows that about two-thirds of European banks report limited demand for stablecoins, reflecting ongoing uncertainty around regulation and market fit.
At the same time, user behavior suggests rising interest. A recent survey conducted across 15 countries found that 54% of respondents used stablecoins within the past 12 months, and 56% plan to acquire more. Many users treat stablecoins as both a payment method and store of value, allocating around one-third of their crypto holdings to these assets.
On the infrastructure side, efficiency gains are becoming visible. In several currency corridors, blockchain-based foreign exchange pricing is approaching parity with traditional systems, with many pairs trading within 100 basis points of interbank rates.
France’s push highlights a broader shift in Europe’s approach to digital finance. If banks scale euro-based stablecoin solutions, the region could strengthen its position in the global crypto economy while reducing dependence on dollar-dominated systems.
