France Advocates for Centralized EU Crypto Regulation Under ESMA

France's central bank is pushing for a seismic shift in European crypto oversight. Governor François Villeroy de Galhau has called for ESMA to become the bloc's sole crypto regulator, framing the move as critical for preserving monetary sovereignty against dollar-dominated stablecoins.

The proposal WOULD expand Paris' regulatory influence beyond MiCA's current framework. Villeroy de Galhau specifically warned about non-EU stablecoins eroding the euro's role in global settlements—a thinly veiled reference to US dollar-pegged assets dominating cross-border transactions.

Concurrently, the Banque de France is advancing wholesale CBDC projects like Pontes and Appia. These initiatives aim to cement the euro's position in tokenized finance while creating infrastructure for a potential digital euro.