French Finance Minister Roland Lescure called out the imbalance in stablecoin markets at a Paris crypto conference, stating the low volume of euro-pegged tokens compared to dollar-based counterparts is “not satisfactory.” He urged European banks to step up efforts to launch euro-denominated stablecoins and reduce reliance on U.S.-centric digital payment infrastructure.
Dollar Stabelcoins Still Rule as Europe Pushes for an Alternative
U.S. dollar stablecoins overwhelmingly dominate both issuance and usage. Tether alone has a circulation of over $185 billion, dwarfing any euro-pegged competitor. Lescure argued that as stablecoins become more embedded in global financial flows, the current structure reinforces dollar hegemony. Europe must build its own euro-anchored ecosystem or risk losing sovereignty over digital payments.
To close the gap, a consortium of major European banks — including ING, UniCredit and BNP Paribas — is working on a joint initiative to launch a euro stablecoin in the second half of 2026. The project aims to provide a regional payment alternative and cut dependence on non-European providers. “That is what we need and that is what we want,” Lescure said.
Tokenised Deposits and Digital Euro: Europe's Dual Path
Lescure also encouraged banks to explore tokenised deposits — blockchain-based representations of traditional bank deposits that enable faster settlement. The approach is seen as a controlled way to integrate digital assets within regulated banking frameworks. He said, “I also strongly encourage banks to further explore the launch of tokenised deposits.”
The European Central Bank is meanwhile advancing a digital euro project, which Lescure described as “the right balance” between central bank-backed anchor and private innovation. Yet progress on the digital euro has been slow, facing resistance from parts of the banking sector and debates within the European Parliament.
Weak Demand and Structural Barriers Weigh on Euro Stablecoin Adoption
Despite policy enthusiasm, market demand remains tepid. A recent RBC Capital Markets survey found that two-thirds of European banks see weak demand for stablecoins, indicating a demand-side problem tied to unclear payment use cases rather than just supply constraints.
Existing euro stablecoin volumes underscore the challenge. Société Générale’s euro stablecoin, launched in 2023, has a circulation of only around 107 million euros — a fraction of its dollar-backed peers. Stablecoins are still primarily used for crypto trading, not everyday payments. Geopolitical tensions have sharpened Europe's urgency to reduce dependence on external payment providers, but bridging the gap between policy ambition and market reality will take time.