France’s finance minister urges European banks to adopt euro stablecoins and tokenised deposits as U.S. digital payment dominance grows.
Europe is making a bold move in the digital currency space.
French Finance Minister Roland Lescure raised concerns about the euro’s limited presence in the stablecoin market. He spoke at a crypto conference in Paris on Friday.
Lescure called the low volume of euro-pegged stablecoins “not satisfactory.” He also pushed European banks to explore tokenised deposits as a solution.
Related reading:
Euro Stablecoins: Why Europe Is Far Behind the Dollar
The global stablecoin market remains heavily dollar-dominated. Tether, based in El Salvador, leads the space by a wide margin. Most stablecoins currently serve crypto traders, not everyday payment users.
According to a Reuters report, a recent RBC Capital Markets survey found that two-thirds of European banks see limited demand for stablecoins.
This gap worries European policymakers. The dollar’s grip on digital payments raises concerns about financial sovereignty.
Europe has long relied on non-European payment providers, and that dependence is now under scrutiny. Tensions with the U.S. have only sharpened those concerns in recent months.
Lescure’s comments reflect a wider push across the continent. Governments and financial institutions are rethinking their digital payment strategies. The goal is clear: reduce exposure to systems outside European control.
European Banks Join Forces on a Euro-Pegged Stablecoin
A group of major European banks is already taking action. ING, UniCredit, and BNP Paribas have formed a joint company, Reuters reported.
Their target is to launch a euro-pegged stablecoin in the second half of 2026. The initiative aims to create a credible European alternative in digital payments.
Lescure voiced direct support for the effort. He called it exactly what Europe needs and wants right now. Beyond stablecoins, he urged banks to go further and consider tokenised deposits.
Tokenisation involves creating blockchain-based tokens that represent existing financial assets.
The backing of a French minister adds political weight to the project. It signals that European governments are not watching from the sidelines. Coordinated action between banks and policymakers could shift the digital currency balance.
The Digital Euro and Europe’s Broader Tokenisation Strategy
The European Central Bank has been developing a digital euro for some time. The project aims to keep central bank money relevant in an increasingly digital economy.
Progress, however, has been slow. Some national bank lobbies have pushed back, and movement in the European Parliament remains limited.
Read more:
ECB Backs Tokenization With Strict Rules on Stability and Control
Lescure expressed support for the ECB’s direction on Friday. He described placing the digital euro at the centre of tokenisation efforts as the right balance.
His remarks align with a broader European strategy to build financial infrastructure on home ground.
Policymakers see tokenisation as more than a trend. They view it as a tool for long-term financial independence. Whether European banks move quickly enough remains the key question.
