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News Every Day |

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

The Bank of France is pressing for a strengthening of the European Union’s Markets in Crypto-Assets Regulation (MiCA), saying the current regulatory framework does not address all the risks in the sector.

Denis Beau, first deputy governor of the Bank of France, said this in speaking points delivered at a Eurofi High Level Seminar on March 26 and posted online by the Bank for International Settlements (BIS) on Thursday (April 9).

The Bank of France believes MiCA “only partially addresses the risks posed by changes in the sector, particularly in the event of widespread adoption of stablecoins issued by non-European players,” Beau said.

The central bank is pushing for MiCA to restrict the use of stablecoins for everyday payments, especially when they are backed by a currency other than the euro; to much more strictly regulate multi-issuance of the same stablecoin inside and outside the EU, “to reduce regulatory arbitrage in times of stress”; and to clarify the regulatory framework for e-money tokens (EMTs) “to improve clarity regarding regulatory requirements,” Beau said.

Stablecoins issued by banks or by electronic money institutions (EMIs) belonging to a banking group present lower counterparty risk than those issued by non-bank actors, because banks benefit from direct access to central bank liquidity and European supervision, Beau said.

Non-bank stablecoin issuers cannot access central bank accounts. However, they could be allowed to do so in the future, especially if they also provide payment services, Beau said.

“At the global level, I would like to reiterate the importance of a full, timely, consistent and global implementation of the FSB [Financial Stability Board] Standards on crypto-assets by all countries, based on the principle of ‘same activities, same risks, same rules’ and technological neutrality, in order to limit regulatory arbitrage,” Beau said.

It was reported in January that policymakers across Europe are weighing how to reduce reliance on U.S.-based card networks and dollar-based stablecoins while preserving the European Central Bank’s role at the core of the monetary system.

In September 2025, it was reported that the European Central Bank wants to ban multi-issuance stablecoins, in part because of the risks in a scenario in which foreign holders of a stablecoin had a claim on EU-based issuers.

The post Bank of France Pushes EU to Rein in Non-Euro-Backed Stablecoins appeared first on PYMNTS.com.

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