Bank of France Pushes EU to Rein in Non-Euro-Backed Stablecoins

Why It Matters

Stronger MiCA rules would reduce regulatory loopholes, protect financial stability, and shape the future of payments across Europe and beyond.

Key Takeaways

• Bank of France wants MiCA to ban non‑euro stablecoins for payments
• Calls for stricter rules on multi‑issuance of stablecoins in EU
• Suggests bank‑backed stablecoins face lower counterparty risk than non‑bank
• Proposes future central‑bank account access for non‑bank issuers offering payments
• Urges global “same activities, same risks, same rules” crypto standards

Pulse Analysis

The Bank of France has taken a leading stance in the EU’s ongoing debate over the Markets in Crypto‑Assets Regulation (MiCA). In remarks delivered at a Eurofi High‑Level Seminar, first deputy governor Denis Beau warned that the current text leaves a loophole for stablecoins issued outside the eurozone, which could be used for everyday transactions without adequate oversight. By urging lawmakers to tighten the framework—particularly around non‑euro‑backed tokens—the central bank aims to align crypto‑payment services with the EU’s broader financial‑stability agenda.

Beau’s proposal targets three vulnerable points: the unrestricted use of foreign‑denominated stablecoins for retail payments, the proliferation of the same token by multiple issuers across borders, and the ambiguous status of e‑money tokens (EMTs). Bank‑backed stablecoins enjoy direct access to central‑bank liquidity and European supervision, reducing counterparty risk, whereas non‑bank issuers lack such safeguards. Tightening multi‑issuance rules would curb regulatory arbitrage during market stress, a concern echoed by the European Central Bank’s recent push to limit reliance on U.S.‑based card networks and dollar‑linked stablecoins.

The French push dovetails with a global call for consistent crypto‑asset standards, as articulated by the Financial Stability Board. Beau emphasized “same activities, same risks, same rules” to prevent a patchwork of national regulations that could fragment the market. If the EU adopts his recommendations, non‑bank stablecoin providers that also deliver payment services might gain limited access to central‑bank accounts, reshaping the competitive landscape. Investors and fintech firms should monitor the legislative timeline, as stricter MiCA provisions could redefine cross‑border payments, liquidity management, and the strategic positioning of both traditional banks and emerging crypto players.