France pushes for tighter MiCA limits on stablecoin payments

French authorities are calling for stricter limits on stablecoin usage under the European Union’s Markets in Crypto-Assets (MiCA) regulation, particularly targeting payments made with non-euro stablecoins such as those pegged to the US dollar.

Denis Beau, First Deputy Governor of the Bank of France, urged EU policymakers to strengthen MiCA rules, arguing that current provisions do not fully address the risks posed by the growing dominance of foreign-issued stablecoins. He warned that widespread use of dollar-backed stablecoins could threaten Europe’s monetary sovereignty and financial stability.

The push comes as US dollar-linked stablecoins account for the vast majority of the global market, raising concerns that Europe’s payment systems could become increasingly “dollarized” if stricter controls are not implemented.

In parallel, France is tightening domestic oversight. The National Assembly recently approved a provision requiring users to report self-custodied crypto holdings exceeding €5,000 annually as part of an anti-fraud bill, though the measure is still under debate due to feasibility and privacy concerns.

Overall, the developments reflect a broader effort by French and European regulators to curb the influence of foreign stablecoins, strengthen regulatory control over crypto assets, and promote euro-based alternatives — including initiatives like the digital euro — within the region’s financial system.