French Economy Minister Roland Lescure has raised concerns over Europe’s digital payments infrastructure, highlighting its excessive reliance on U.S.-based systems and calling on European banks to develop euro-denominated stablecoins and tokenized deposits. Delivering a pre-recorded address at a cryptocurrency conference in Paris, Lescure noted that the volume of euro-backed stablecoins significantly lags those pegged to the U.S. dollar, describing the disparity as “unsatisfactory.”
Banks urged to issue euro stablecoins
Lescure voiced his support for an upcoming euro stablecoin consortium led by major banks—including ING, UniCredit, and BNP Paribas—stating that he stands behind the initiative. This stablecoin is expected to launch in the second half of 2026. Beyond stablecoin projects, Lescure encouraged banks to further investigate the possibilities of tokenized deposit products, viewing these as a necessary evolution in the sector.
Currently, U.S. dollar-pegged stablecoins dominate the sector by a significant margin. According to data from The Block, the aggregate supply of these tokens now surpasses $300 billion. Among them, Tether’s USDT leads with a market capitalization of approximately $186 billion, followed by Circle’s USDC at around $78.8 billion.
Euro stablecoin market remains marginal
By comparison, euro-backed stablecoins remain a small fraction of the total market. CoinGecko data shows the collective market capitalization of euro stablecoins is just $912 million. In this space, Circle’s EURC leads with $426.9 million, followed by STASIS’s EURS at $150.3 million. Societe Generale’s CoinVertible (EURCV), introduced in 2023, has reached a value of $126.7 million.
According to a Reuters report citing a study by RBC Capital Markets, two-thirds of European banks believe demand for stablecoins is insufficient. However, other data suggests that use of stablecoins for payments and savings across Europe is growing at a notable pace.
User adoption and new research trends
A recent study by BVNK, conducted in partnership with Coinbase and Artemis and based on YouGov data, surveyed 4,658 respondents in 15 countries. The February report revealed that 54% of participants had held stablecoins in the previous year, and 56% expressed interest in increasing their stablecoin holdings. On average, respondents allocate nearly a third of their overall savings to cryptocurrencies and stablecoins.
Meanwhile, research by payments infrastructure provider Borderless found that stablecoin-based foreign exchange transactions in regions such as Latin America and East Africa now occur at volumes nearly equal to traditional bank transfers. Analysis of more than 1.1 million price points across 51 currencies revealed that for 14 out of 21 blockchain-based stablecoins, the exchange rate difference with traditional banks is now under 100 basis points.
“Europe’s digital payments system is overly dependent on U.S. infrastructure, and the circulation of euro-based stablecoins remains very low compared to their dollar-pegged counterparts. European banks need to act faster to close this gap,” Roland Lescure emphasized.
Comparisons underline the striking imbalance: while USD-pegged stablecoins surpass $300 billion in total supply, euro-backed alternatives have yet to cross the $1 billion mark. Policymakers view this as a risk to the region’s financial sovereignty and digital competitiveness, encouraging a paradigm shift in strategy.
Efforts by banks to issue euro stablecoins are seen as crucial to strengthening Europe’s role in the evolving digital asset landscape. The entry of major banks like BNP Paribas and ING signals that industry momentum is building, although results may take several years to materialize.
Despite uncertain demand, research indicates rising interest and adoption among European users. Cross-border remittances, digital savings, and on-chain payments are key areas where stablecoins could offer tangible benefits, particularly as regulatory clarity increases in the EU.
Whether euro-backed stablecoins can close the gap with their USD counterparts remains uncertain, but growing institutional support and user appetite suggest the disparity may narrow in the coming years.
As preparations continue for the launch of a new pan-European stablecoin consortium by 2026, financial market observers are watching closely to see if the euro can finally carve out a meaningful presence in the digital currency space.
