France Considers Banning Digital Euro, Promoting Stablecoins

Éric Ciotti of the Union of the Right for the Republic has introduced a motion for resolution that represents a direct challenge to the European Central Bank’s digital currency ambitions. The proposal, submitted to France’s National Assembly, calls for an outright ban on the digital euro within French territory. This legislative move comes at a critical juncture as the ECB continues development work on a potential digital version of Europe’s common currency.

The motion specifically targets the digital euro project being pioneered by the European Central Bank, positioning France as potentially the first major European economy to formally reject the centralized digital currency initiative. Ciotti’s proposal argues for an alternative approach to digital finance, one that favors private sector innovation over central bank-led digital currency development. The timing of this motion suggests growing political resistance to CBDCs within European Union member states.

This legislative initiative marks a significant escalation in the political debate surrounding digital currencies in Europe. While the ECB has been conducting research and development on a digital euro for several years, the Ciotti motion represents the first formal parliamentary attempt by a major EU nation to block its implementation. The outcome of this proposal could set a precedent for other EU members considering their stance on central bank digital currencies.

In place of the digital euro, Ciotti’s motion advocates for “the dissemination of euro stablecoins and investment in crypto-assets.” This represents a clear policy preference for privately-issued digital currencies pegged to the euro over a central bank digital currency. The proposal specifically mentions promoting euro-denominated stablecoins, which would maintain parity with the traditional euro while operating on blockchain networks.

The motion also explicitly encourages investment in crypto-assets like Bitcoin (BTC), signaling a broader acceptance of the digital asset ecosystem. This dual approach—rejecting CBDCs while embracing stablecoins and broader cryptocurrency investment—positions France as potentially becoming one of Europe’s most crypto-friendly jurisdictions. The proposal reflects a growing recognition among policymakers that digital currency innovation is inevitable, but that the form it takes matters significantly.

By promoting stablecoins rather than a CBDC, the motion suggests a preference for market-driven solutions in the digital currency space. Euro stablecoins would maintain the currency’s stability while leveraging private sector innovation and blockchain technology. This approach contrasts sharply with the centralized control inherent in CBDC designs, aligning with broader political philosophies about the proper role of government in financial innovation.

The French motion explicitly references the United States’ recent legislative actions, particularly the GENIUS Act signed into law in July. This American legislation similarly seeks to restrict central bank digital currencies while supporting stablecoin development, creating a transatlantic pattern of resistance to CBDCs. The citation of U.S. policy suggests coordinated or parallel thinking among Western nations concerned about central bank overreach in digital currency development.

The GENIUS Act represents a significant precedent for nations considering their approach to digital currency regulation. By following the American model of restricting CBDCs while supporting stablecoins, France could be positioning itself within an emerging Western consensus on digital currency policy. This alignment could have implications for future international coordination on cryptocurrency regulation and central bank digital currency development.

The global debate around CBDCs has intensified in recent years, with countries taking markedly different approaches. China has aggressively pursued its digital yuan, while the United States and now potentially France are moving in the opposite direction. This French proposal, if adopted, would create a significant schism within the European Union regarding digital currency strategy, potentially complicating the ECB’s plans for a unified digital euro across the eurozone.

The Ciotti motion, if successful, could fundamentally alter the trajectory of digital finance in Europe. By rejecting the ECB’s digital euro while embracing private stablecoins and crypto assets, France would be charting a distinctly different course from other major European economies. This could create regulatory fragmentation within the EU’s single market, complicating cross-border digital finance and potentially forcing the ECB to reconsider its digital currency strategy.

The proposal also raises questions about France’s relationship with European financial institutions. A French ban on the digital euro would represent a significant challenge to ECB authority and could trigger broader discussions about national sovereignty versus European integration in financial matters. The motion’s success would likely embolden similar movements in other EU member states skeptical of centralized digital currency projects.

For the cryptocurrency industry, the French proposal represents a potential regulatory opening. By explicitly promoting stablecoins and crypto investment, France could attract digital asset businesses and investment that might otherwise go to more crypto-friendly jurisdictions. This could position Paris as a European hub for digital finance innovation, competing with traditional financial centers like London and Frankfurt that have taken more cautious approaches to cryptocurrency regulation.