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European Banks Prepare to Launch Euro-Backed Stablecoin

A group of 10 banks is targeting a 2026 launch for a euro-pegged stablecoin, operating under an entity authorized by the Dutch Central Bank. BNP Paribas announced its participation alongside nine other EU-based banks in this venture, aiming to introduce a euro-backed stablecoin “in the second half of 2026.” The Amsterdam-based entity, Qivalis, established by these banks, will introduce a stablecoin compliant with the EU's Markets in Crypto-Assets (MiCA) framework, pending regulatory approvals. “A native euro stablecoin isn’t just about convenience — it’s about monetary autonomy in the digital age,” stated Qivalis CEO Jan-Oliver Sell. “Presenting new opportunities for European companies and consumers to interact with onchain payments and digital asset markets in their own currency.” This push for a significant euro-pegged stablecoin occurs as US regulators are poised to implement legislation establishing a framework for payment stablecoins. The GENIUS Act, signed into law in July, sets the stage for clearer regulatory guidelines in the US.

Concerns Over Monetary Policy Impact

Amidst these efforts, Dutch Central Bank Governor Olaf Sleijpen reportedly cautioned about potential risks to monetary policy as the stablecoin market expands. The European Central Bank (ECB) released a report in November, acknowledging that risks associated with stablecoins were likely limited but emphasizing that “the rapid growth justifies close monitoring.” According to ECB adviser Jürgen Schaafhe, euro-denominated stablecoins had a market capitalization of less than 350 million euro, approximately $407 million at the time of publication. This represented less than 1% of the global market as of July.

Tether Exits EU Stablecoin Race

Stablecoin issuer Tether ceased redemptions for its euro-pegged coin, EURt, on Nov. 25, roughly a year after announcing its decision to discontinue support. The company attributed this decision to the EU’s MiCA regulations, with CEO Paolo Ardoino citing potential risks for stablecoins within the framework.

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