Supporters say a centrally run digital currency could let authorities track and freeze people’s money, and they compared the plan to China’s digital yuan.
They warned a digital euro might let users move deposits straight to the ECB and weaken banks, raising the risk of shifts that could destabilize lenders.
The ECB began a preparation phase in November 2023 and expects that phase to end by the end of 2025; officials say circulation could start around 2029, according to Piero Cipollone.
Lawmakers want MiCA rules adjusted so European banks and companies can issue euro tokens more easily.
As part of the package, the resolution seeks a lighter touch on Basel prudential rules that now treat some crypto-backed loans as highly risky and impose capital buffers up to 1,250%.
Backers say those rules discourage crypto-collateral lending and want a “targeted deviation” to encourage bank participation.
France has opened doors to more regulated crypto work. The AMF approved BPCE’s Hexarq for custody and trading, and Lise, a tokenized equity platform, got a DLT Pilot Regime green light.
Based on Chainalysis, France processed about $180 billion in crypto flows from July 2024 to June 2025, placing it among Europe’s busiest markets.
The proposal faces legal and political tests, but it makes clear France aims to shape how digital money works in Europe. The debate is expected to draw intense public attention.
Featured image from Unsplash, chart from TradingView
