France Backs Euro Stablecoins to Counter Digital Dollarization

France's finance minister Roland Lescure has called for the development of more euro-denominated stablecoins, urging banks to explore tokenized deposits. This shift marks a significant change in policy from France's earlier stance on private stablecoins.

The Qivalis alliance, comprising 12 major European banks including ING and BNP Paribas, is planning a MiCA-compliant euro stablecoin launch in H2 2026. Lescure explicitly endorsed the Qivalis initiative, stating that 'Europe needs more euro-based stablecoins'.

The move aims to reduce reliance on dollar-pegged tokens and curb 'digital dollarization' in European payments and DeFi. This development comes as Circle launches its native USDC Bridge, a cross-chain service for burning and minting USDC between chains.