The Governor of the Bank of France called for stronger oversight of stablecoins in the EU.
Date: 2025-10-10 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
At the ACPR-AMF fintech forum in Paris, Bank of France Governor Villeroy de Galhau proposed transferring direct oversight powers over stablecoin issuers to the European Securities and Markets Authority (ESMA). He emphasized that cryptocurrency regulation should be based on the EU's Markets in Cryptoassets Act (MiCA) and applied uniformly across all countries. He argued that fragmented approaches undermine Europe's financial stability and sovereignty, especially given the rapid growth of crypto companies.
De Galhau believes that centralized oversight by the ESMA will help establish uniform standards for all market participants, regardless of their location. "MiCA is an important step towards orderly regulation of the crypto industry, but without coordinated action between countries, its potential will be limited. Only joint measures will ensure investor protection and fair competition in the market," he noted.
The head of the French central bank is particularly concerned about stablecoins pegged to the US dollar. In his opinion, they could pose a threat to the euro's position and lead to an increased role for private payment solutions, increasing Europe's dependence on external and unregulated entities. MiCA allows for the issuance of such assets both within and outside the EU, which, according to de Galhau, creates regulatory loopholes and reduces the transparency of issuers' reserves.
He emphasized that if the situation does not change, dollar-denominated stablecoins could displace European alternatives and weaken the domestic financial system. In this regard, Villeroy de Galhau proposed strengthening controls over reserve provisioning and limiting the multiple issuance of tokens from the same issue.
Similar concerns were recently expressed by Chiara Scotti, Deputy Governor of the Bank of Italy. She stated that multi-issue stablecoins do indeed increase liquidity, but they carry significant legal and supervisory risks, especially when issuers are located outside the EU. She emphasized that the sustainable development of digital assets requires a unified European legal framework and strict requirements for international operators.
Therefore, European financial authorities are increasingly discussing stricter regulation of cryptocurrencies and stablecoins to preserve the sovereignty of the euro and minimize the risks of dependence on external financial systems.
