French Finance Minister Roland Lescure issued a stark warning at a cryptocurrency conference in Paris, urging European banks to move swiftly to launch euro-based stablecoins and tokenized deposits or risk seeing digital payments dominated entirely by the US dollar. Lescure described the current lack of euro-pegged stablecoins as “not satisfactory” and called on the banking sector to “aggressively pursue tokenized assets.”
The Looming Dollar Dominance
The gap in digital liquidity is staggering. Tether, the dominant stablecoin issuer, now boasts a circulation exceeding $185 billion in dollar-linked tokens. In contrast, Europe’s flagship euro stablecoin by Societe Generale, launched three years ago, has stagnated at just €107 million ($126 million). “The scale of US dominance is hard to overstate,” Lescure said in pre-recorded remarks reported by Reuters.
He noted that the future of digital commerce is being written almost exclusively in US dollars, raising alarm in both Paris and Brussels. European policymakers fear that reliance on US payment infrastructure leaves the euro zone vulnerable to external political shifts or service fragmentation.
European Banks Join Forces
To address the gap, a heavyweight consortium including ING, Unicredit, and BNP Paribas has formed a new venture to launch a competitive euro-pegged stablecoin by late 2026. Lescure endorsed the initiative, saying: “This is what we need, and this is what we want.” He also strongly urged banks to explore the issuance of tokenized deposits — converting traditional bank holdings into blockchain-based tokens.
This push goes beyond stablecoins. Tokenized deposits are seen as a way to modernize Europe’s “rails” and reduce dependence on foreign payment giants like Visa and Mastercard, advancing the continent’s push for “strategic autonomy.”
ECB’s Digital Euro as Anchor
Lescure also weighed in on the friction between private banking interests and the European Central Bank’s (ECB) digital euro project. While some banking lobby groups have opposed the digital euro over fears of deposit outflows, Lescure backed the ECB’s vision. He described the ECB’s plan to position a central bank digital currency as the “anchor” for tokenization efforts as “the right balance,” suggesting a hybrid ecosystem where public and private digital monies coexist.
Guidance from the ECB aligns with arguments that allowing providers to issue identical tokens across the EU poses risks to financial stability. Lescure urged banks to see the digital euro as a complement, not a threat.
Market Skepticism and Urgency
Despite the political pressure, market adoption remains tepid. Data from RBC Capital Markets indicates that 66% of European banks still report limited customer demand for stablecoins. This suggests that even if banks launch products, attracting users may be challenging.
However, the window for action is closing. Former US President Donald Trump signed groundbreaking stablecoin legislation last year, providing a clear regulatory path for dollar-denominated stablecoins. European regulators believe that if they do not act soon, the opportunity to secure digital payment sovereignty will slip away.
For Lescure, the mission is no longer just about financial innovation — it is about ensuring the euro remains a relevant currency in an era of automated digital trade. Europe must make a choice, and it must make it fast.