Key Takeaways:
In a significant policy shift, France’s finance minister has endorsed a plan by a consortium of 12 European banks to launch a euro-pegged stablecoin, aiming to challenge the dominance of US dollar-backed tokens in the region.
“That is what we need, and that is what we want,” French Finance Minister Roland Lescure said in a pre-recorded message, expressing support for the Qivalis initiative. “I also strongly encourage banks to further explore the launch of tokenized deposits.”
The Qivalis consortium, which includes major European banks like ING, UniCredit, BBVA, and BNP Paribas, plans to launch its euro-pegged stablecoin in the second half of 2026. The project is designed to be fully compliant with the EU’s Markets in Crypto-Assets (MiCA) regulation, which establishes a comprehensive framework for digital assets across the bloc. The move comes as US dollar-denominated stablecoins, primarily Tether’s USDT and Circle’s USDC, command the vast majority of the market. As of Friday, USDT alone had a market capitalization of approximately $186 billion, according to CoinMarketCap data.
Lescure’s endorsement marks a notable reversal from the French government’s previous stance. Former Finance Minister Bruno Le Maire had taken a hard line against privately-issued stablecoins, stating they “had no place on European soil” and posed a threat to national sovereignty. Similarly, Bank of France Governor François Villeroy de Galhau has warned that private money could lead to a “loss of monetary sovereignty.”
The push for a European stablecoin is not just a top-down policy goal; it's also fueled by growing demand from corporate clients. According to Lamine Brahimi, co-founder of crypto custody provider Taurus, corporate treasury teams are increasingly looking to stablecoins to accelerate payments, reduce settlement costs, and operate outside of traditional banking hours. “Once clients start asking for better settlement, more flexibility, or more efficient cross-border movement of value, the conversation becomes much more immediate and much more practical,” Brahimi said. This practical need is accelerating the move from exploration to implementation for many European financial institutions.
The Qivalis project is part of a wider trend of European banks embracing digital assets. Paris-based Societe Generale has launched its own stablecoin focused on cross-border payments and cash management, while another French bank, Oddo BHF, has also introduced a MiCA-compliant euro stablecoin. The increasing adoption is reflected in trading volumes. Crypto platform Paybis reported that between October 2025 and March 2026, USDC volume in the EU climbed about 109%, with its share of total stablecoin activity on the platform rising from 13% to 32%. This government-backed push for a native euro stablecoin could significantly reshape the digital payment landscape in Europe, potentially reducing the market share of dollar-based tokens and fostering a more competitive, multi-currency stablecoin environment.
This article is for informational purposes only and does not constitute investment advice.
