Bank of France pushes for non-euro stablecoin restrictions to protect euro sovereignty

Euro-pegged stablecoins may gain a competitive edge over dollar-based alternatives in the European market. This shift is driven by the Bank of France's push for stronger limits on non-euro stablecoin payments under the Markets in Crypto Assets (MiCA) framework. Senior deputy governor Denis Beau argued in a March speech that MiCA only partially addresses the risks posed by stablecoins, especially those issued outside Europe. The central bank warns of "stablecoinisation" and dollarisation risks to Europe's payment system, noting that non-euro stablecoins currently account for nearly 98% of the bank's global stablecoin market. The goal is to protect monetary sovereignty by restricting the use of dollar-backed tokens.