France’s finance minister Roland Lescure has expressed support for a plan led by European banks to introduce a euro-pegged stablecoin in 2026, aiming to challenge the current dominance of US dollar-backed tokens.
According to reports, the proposed Qivalis stablecoin initiative, launched in 2025, involves major institutions such as ING and UniCredit. The project is designed to align with the EU’s Markets in Crypto-Assets framework, with a rollout expected in the second half of 2026.
“That is what we need, and that is what we want,” Lescure said, adding: “I also strongly encourage banks to further explore the launch of tokenized deposits.”
The initiative reflects growing concern within Europe about the imbalance in the stablecoin market, which is currently dominated by dollar-denominated assets such as Tether (USDT) and USD Coin (USDC). These tokens collectively represent a significant share of global stablecoin capitalization, with USDT alone nearing $186 billion.
Lescure noted that the relatively limited scale of euro-based stablecoins remains “not satisfactory,” highlighting the urgency of building a competitive alternative within the European financial system. This view is echoed by François Villeroy de Galhau, who has pointed to tokenization and stablecoins as central themes shaping the financial landscape in the coming years, particularly as blockchain infrastructure continues to gain traction.
Despite growing momentum, regulatory questions remain unresolved, particularly around whether stablecoins should offer yield. European policymakers, including central bank officials, have raised concerns that interest-bearing stablecoins could introduce financial instability.
The issue is also proving contentious in the United States, where lawmakers continue to debate key aspects of crypto market structure legislation. Disagreements over stablecoin yield, tokenized equities and broader regulatory safeguards have slowed progress, leaving uncertainty around how these products will be governed in major markets.
Sources:
https://cointelegraph.com/news/french-finance-minister-euro-pegged-stablecoins