Bitcoin Updates: France Challenges ECB, Supports Bitcoin Amid EU Rules Restricting Stablecoin Growth

USD Coin (USDC) has reached a circulating supply of $76 billion, propelled by key alliances and multi-chain expansions that highlight its significance as a foundational element in the worldwide crypto ecosystem.

, the company behind USDC, has recently revealed a partnership with ClearBank to broaden the stablecoin’s reach in Europe. By utilizing the UK-based banking-as-a-service provider’s payment infrastructure, the collaboration will facilitate instant and affordable conversions between fiat and stablecoins, according to an . This initiative is in line with the European Union’s Markets in Crypto-Assets (MiCA) regulations, which require strict transparency regarding reserves—a benchmark consistently meets through monthly audits by Deloitte. The partnership is designed to simplify cross-border settlements for European enterprises, with one expert suggesting that USDC could cut transaction expenses by as much as 90% compared to conventional methods, a point also noted in the ABC Money article.

At the same time, regulatory ambiguity continues to affect the EU’s stablecoin industry. Conflicting requirements between MiCA and the Payment Services Directive (PSD2) have imposed additional compliance challenges, forcing companies to secure two separate licenses for stablecoin custody and transfer operations. Circle’s EU policy head,

, cautioned that if this regulatory overlap is not resolved by March 2026, it could hinder the adoption of euro-backed stablecoins and undermine MiCA’s objective of regulatory harmonization. The dual requirements—€125,000 in minimum capital under both MiCA and PSD2—effectively double operational expenses, raising concerns about the EU’s ability to compete globally in the stablecoin sector, as Hansen pointed out.

France has taken a decisive approach in this environment, with legislators rejecting the European Central Bank’s digital euro initiative and instead supporting

and euro-pegged stablecoins as alternatives, according to a . A resolution passed by the National Assembly criticizes central bank digital currencies (CBDCs) for threatening privacy and economic autonomy, likening the ECB’s project to China’s digital yuan. The proposal further recommends establishing a 2% national Bitcoin reserve, financed through energy-efficient mining and tax breaks, while urging Europe to decrease its reliance on U.S.-backed stablecoins such as USDC and Tether’s . Meanwhile, French authorities have stepped up oversight of crypto exchanges, conducting anti-money laundering checks on platforms like Binance as part of MiCA compliance efforts, as detailed in the same Yahoo article.

Decentralized finance (DeFi) platforms are also influencing the evolution of stablecoins. Bybit’s adoption of native USDC transfers on Hedera’s blockchain has increased liquidity on the ESG-oriented network, with inflows rising by 25% after the announcement, as previously reported by ABC Money. Likewise, Solana’s network recently saw $750 million in USDC minted, leveraging its high-speed capabilities to support DeFi and NFT markets. However, the stablecoin landscape remains fragmented. By late 2025, USDC is available on over 15 blockchains, while USDT operates on eight, creating interoperability issues that complicate cross-chain transfers and liquidity management—a challenge discussed in an .

The so-called “stablecoin bridge problem” has become a significant challenge. Recent research has shown that having multiple token contracts for a single stablecoin—such as wrapped tokens or chain-specific versions—splits liquidity and raises security concerns. Solutions like intent-based bridging, where users define their transaction objectives without manually choosing transfer routes, are gaining popularity. Protocols such as Across are working to unify these processes, allowing for smooth cross-chain transfers while hiding technical complexities, as explored in detail in the Across blog.

As stablecoins see wider adoption—from remittances in high-inflation countries to use in institutional treasuries—the sector stands at a crucial crossroads. While regulatory progress and technological advances are fueling expansion, unresolved issues around interoperability and compliance threaten to fragment the market. With USDC’s market capitalization approaching $76 billion and DeFi platforms testing high-yield offerings like MEXC’s 600% APR BTC rewards, a .

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