Bank of France Seeks Stricter Regulation on Stablecoin Payments

The Bank of France has issued a critical review of the EU's Markets in Crypto-Assets (MiCA) framework, specifically targeting stablecoin payments. Deputy Governor Denis Beau emphasized that current provisions only partially address systemic risks from widespread stablecoin adoption.

The central bank is concerned about non-euro stablecoins gaining dominant positions in European markets, potentially fragmenting payment systems and reducing euro usage. Beau also highlighted the need for stronger oversight of stablecoins issued by entities outside EU jurisdiction.