The French government has officially emphasized the necessity of euro-based stablecoins, signaling a shift in its policy stance from a regulation-centric approach to one of "fostering." This move is interpreted as Europe taking action to safeguard its monetary sovereignty, especially given that dollar stablecoins have become the de facto standard in the digital payment market.
France has long prioritized market stability and investor protection based on MiCA, the European Union's regulatory framework for virtual assets. However, recently, calls to move beyond mere regulation and actively foster euro-based digital assets have emerged at the forefront of policy. This is not unrelated to the reality that dollar-based assets hold an overwhelming market share in the global stablecoin market.
Currently, major stablecoin payments and liquidity are effectively centered around the US dollar. As most sectors—including DeFi, global exchanges, and cross-border payments—operate based on dollar stablecoins, the influence of European currencies has been relatively weakened. There are growing concerns that if this structure becomes entrenched, Europe could be marginalized within the digital financial infrastructure.
France's recent stance is interpreted as part of a monetary strategy that goes beyond mere industrial development. The intention is to expand the use of the euro in the areas of payments, settlements, and asset tokenization through euro stablecoins, and furthermore, to independently establish a digital financial ecosystem within Europe. In particular, securing euro-based payment methods is considered an essential element in settlements between institutional investors and corporations, as well as in the markets for tokenized securities and real assets (RWA).
This trend aligns with the Digital Euro project being pursued by the European Central Bank (ECB). If central bank digital currencies (CBDCs) and private stablecoins operate complementarily, Europe can establish a dual digital currency system encompassing both the public and private sectors.
The market is paying close attention to the possibility that France's policy changes could lead to a shift in direction for Europe as a whole. The assessment is that the country has moved beyond simply refining regulations and entered a "strategic nurturing phase" aimed at securing leadership in the global digital asset competition.
Ultimately, the core of this move is singular: whether it is possible to break away from a digital financial structure dependent on dollar stablecoins and expand the influence of the euro on-chain. This signal from France is increasingly likely to become the starting point that changes the landscape of European digital finance.
