France’s Support for Euro-Backed Stablecoins
In a notable policy shift, France’s finance minister, Roland Lescure, has voiced strong support for the development of euro-backed stablecoins and the advancement of tokenized bank deposits. This proactive stance was expressed during a crypto conference held in Paris on April 17, where Lescure emphasized that the current ratio of euro-pegged stablecoins in circulation compared to their dollar counterparts is insufficient. He cautioned against allowing Europe’s digital payment systems to be overly reliant on non-European currencies.
Qivalis Consortium and Euro Stablecoin Launch
Lescure’s call to action comes at a pivotal time, as the Qivalis consortium — comprised of 12 significant European banks, including well-known names like ING, UniCredit, and BNP Paribas — is gearing up for the launch of a new euro stablecoin by 2026. This stablecoin is set to comply with the EU’s Markets in Crypto-Assets (MiCA) regulatory framework. In his address, Lescure stated his firm belief that Europe requires “more euro-based stablecoins” and he encouraged the banking sector to pursue tokenized deposits actively, framing these innovations as vital to enhancing Europe’s digital sovereignty and lessening reliance on dollar-linked currencies.
“That is what we need and that is what we want,”
– Roland Lescure
He highlighted the Qivalis initiative as essential to this vision, suggesting his endorsement marks a significant political endorsement for their efforts to create a euro-pegged stablecoin. Based in Amsterdam, Qivalis is currently seeking regulatory authorization from the Dutch central bank to operate as an electronic money institution. CEO Jan-Oliver Sell has characterized the establishment of a euro stablecoin as a potential “major turning point for digital commerce and financial innovation in Europe.”
Strategic Response to Digital Dollarization
The consortium aims to serve as the critical link between blockchain technology and the euro, striving to become the primary euro token used across various exchanges and decentralized finance (DeFi) platforms. This initiative appears to be a strategic response to prevent what some policymakers refer to as “digital dollarization,” which can occur due to the dominance of dollar-based stablecoins like Tether (USDT) and USD Coin (USDC).
Supporting Qivalis reflects France’s broader approach towards enhancing the regulatory landscape surrounding non-euro stablecoins. Recently, the Bank of France has advocated for stricter regulations governing foreign stablecoin transactions under the MiCA guidelines to mitigate systemic risks associated with their use. European regulators have expressed concerns that the widespread acceptance of non-EU stablecoins could disrupt monetary stability, intensifying efforts to impose stricter controls on large dollar-tethered tokens while simultaneously facilitating the launch of euro-oriented projects.
Future of Euro-Based Stablecoins
As the European financial landscape increasingly favors euro-based stablecoins, banks are transitioning from preliminary discussions to active launch preparations, driven by the clarity provided by the MiCA framework. For France, promoting Qivalis and euro stablecoins aims to ensure that as on-chain settlement activities grow to match traditional financial processes, the euro remains the foundational currency for European transactions, encompassing both payments and tokenized financial assets.
