By Elizabeth Howcroft
PARIS, April 17 (Reuters) – Europe needs more euro-based stablecoins, French Finance Minister Roland Lescure said on Friday, and urged the bloc’s banks to explore tokenised deposits to help end U.S. dominance in digital payments.
In pre-recorded comments at a crypto conference in Paris, Lescure said the relatively small volume of euro-pegged stablecoins compared to dollar-pegged ones was “not satisfactory”.
Banks worldwide are experimenting with stablecoins, a type of cryptocurrency designed to maintain a constant value and backed by traditional currencies. Several have joined forces to trial the technology, especially since U.S. President Donald Trump last year signed a law establishing rules for stablecoins.
However, the stablecoin market is dominated by El Salvador-based Tether, and the coins are used mostly for crypto trading, with their role in making payments still minimal. Two-thirds of European banks surveyed by RBC Capital Markets said demand for stablecoins remains limited, according to a research note published this week.
EUROPEAN BANKS SEEK TO WEAKEN U.S. DOMINANCE
A group of European banks, including ING, UniCredit and BNP Paribas have formed a company to launch a euro-pegged stablecoin in the second half of 2026 that they hope will counter U.S. dominance in digital payments.
“That is what we need and that is what we want,” Lescure said on Friday, referring to the initiative. “I also strongly encourage banks to further explore the launch of tokenised deposits,” he added. Tokenisation refers to creating blockchain-based tokens to stand in for existing financial assets.
European policymakers are trying to reduce reliance on non‑European payment providers, as a result of tense relations with the U.S. that have heightened concerns about the fragmentation of EU payments services.
The European Central Bank has been developing a digital euro to preserve the role of central bank money in a digital economy, although in some countries bank lobbies have resisted the plans and progress in European Parliament has been slow.
Lescure on Friday said he supported ECB plans to put a digital central bank currency at the centre of tokenisation efforts, calling it “the right balance”.
Tether says it has more than $185 billion of its dollar-pegged tokens in circulation. Societe Generale says its euro-pegged stablecoin, launched in 2023, has just 107 million euros ($126 million) in circulation.
($1 = 0.8479 euros)
(Reporting by Elizabeth Howcroft, writing by Alessandro Parodi, Editing by Tommy Reggiori Wilkes and Barbara Lewis)
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