French finance minister urges banks to roll out euro stablecoins to curb dollar dominance

French Finance Minister Roland Lescure is pressing European banks to accelerate the development of euro-denominated stablecoins and tokenized deposits, arguing the bloc must respond to the U.S. dollar's overwhelming lead in digital payments. Speaking in prerecorded remarks at a crypto conference in Paris, Lescure said the limited supply of euro-pegged stablecoins is "not satisfactory" and urged the banking industry to move faster on tokenized assets to protect Europe's financial sovereignty, Reuters reported. Dollar-linked stablecoins continue to dominate global digital liquidity. Tether, the El Salvador-based issuer, has more than $185 billion in circulation. By contrast, Societe Generale's euro stablecoin, launched three years ago, has remained small at 107 million euros ($126 million). A consortium that includes ING, Unicredit and BNP Paribas has set up a new venture aiming to launch a competitive euro-pegged stablecoin in late 2026. "That is what we need and that is what we want," Lescure said on Friday, April 17. He also urged banks to further explore issuing tokenized deposits, which would convert traditional bank liabilities into blockchain-based tokens to modernize payment infrastructure and reduce reliance on foreign providers. Lescure framed the push in strategic terms, pointing to concerns in the EU that dependence on U.S. payment rails could leave the euro area exposed to external policy shifts or service disruptions. He also backed the European Central Bank's digital euro project amid resistance from some bank groups that fear it could siphon deposits. Lescure said the ECB's plan to use a central bank digital currency as an "anchor" for tokenization efforts from 2026 strikes "the right balance," envisioning a system where public and private digital money operate side by side. Market appetite remains uncertain. RBC Capital Markets data shows 66% of European banks still see limited customer demand for stablecoins. Even so, Lescure warned that Europe is running out of time to respond, citing momentum in the U.S. after President Donald Trump signed landmark stablecoin legislation last year. For Lescure, the objective is to keep the euro relevant as digital trade becomes increasingly automated.