French Finance Minister Roland Lescure emphasized the need for more euro-pegged stablecoins in the European Union, encouraging banks to explore tokenized deposits. This marks a significant shift in the government's approach, as Lescure expressed support for a group of 12 European banks planning to launch a euro-pegged stablecoin in 2026.
The move aims to counter US dominance in digital payments. Lescure noted that the current volume of euro-pegged stablecoins is 'not satisfactory' compared to dollar-pegged ones. This stance differs from the previous Finance Minister Bruno Le Maire's strict regulatory approach, which deemed privately-issued fiat-pegged cryptocurrencies a threat to national sovereignty.
The Bank of France Governor Francois Villeroy de Galhau also warned about the potential risks of stablecoins, including the loss of monetary sovereignty.