Neither Bitcoin nor a digital euro: Europe's major banks join forces to launch a currency backed by the EU

Ten European banks will launch a new euro-denominated stablecoin in 2026 under the MiCA framework. Its development aims to strengthen the digital and financial autonomy of the eurozone.

Europe is on the verge of a major transformation in its financial system with the planned launch of a private euro stablecoin in the second half of 2026. A group of ten leading banks on the continent, headed by BNP Paribas and including entities such as ING, UniCredit, CaixaBank and SEB, has joined forces to create a stablecoin that seeks to optimize and accelerate payments between countries.

This project is being developed under the umbrella of the regulations Markets in Crypto-Assets (MiCA), which provides a European regulatory framework designed to offer greater security and clarity in the management of digital assets. 

With this move, European banks are not only addressing the growing need for more efficient digital payment methods, but are also strengthening their monetary independence from dollar-linked stablecoins, positioning themselves in an increasingly competitive global financial environment.

An alliance to modernize digital payments in Europe

The announcement of this new stablecoin shows how major European banks are working together to take digital payments in the region to the next level. 

Although Europe is making progress on a public initiative led by the Eurosystem to create a digital version of the euro, the region's sovereign currency, which would complement cash and be available for general public use, this initiative is more focused on offering a private European alternative to stablecoins dominated by the US dollar, such as USDT and USDC, and in developing a digital payments infrastructure based on blockchain technology.

The goal, according to the bank, is to transform how payments and money transfers are made, facilitating faster and more secure transactions. BNP Paribas confirmed in a release which, together with nine other banks from different countries of the European Union, will work on the creation of a blockchain-based digital payment platform, in order to offer a secure and reliable solution that complies with local regulations. 

“This initiative will offer a European alternative to the dollar-backed stablecoin market, thus contributing to Europe’s strategic autonomy in payments.”the bank stated. 

The development of this stablecoin project will be handled by a new entity called Qivalis, which has been established in Amsterdam and will be under the direct supervision of the Central Bank of the Netherlands. 

To operate within the legal framework, Qivalis will seek a license as an Electronic Money Institution, which guarantees that the digital currency and digital payment platform it develops will comply with European regulations and maintain complete transparency. This represents a clear difference compared to other private digital currencies that lack official backing and regulatory oversight.

Finally, the participation of banks with extensive experience and a proven track record is key to building trust in this initiative, which aims to facilitate money management in a digital environment, enabling immediate payments and secure transfers between financial institutions. This advancement could establish a new standard for the payments system in Europe, combining technological innovation with the guarantees and stability offered by financial regulation.

MiCA drives digital innovation in Europe

The MiCA regulation, under which this private stablecoin initiative is being developed, represents a crucial milestone for the European digital ecosystem, consolidating the European Union as a global leader in the supervision and development of the crypto market. 

By establishing a clear and harmonized framework that regulates crypto assets, MiCA provides greater legal certainty for both investors and issuers, facilitating the entry of new companies and projects into the digital space. This regulatory environment fosters trust, incentivizes investment, and reduces barriers to technological innovation in key sectors such as decentralized finance (DeFi), non-fungible tokens (NFTs), and emerging blockchain platforms. 

Furthermore, MiCA fosters global competition by providing a predictable regulatory environment that protects users without stifling creativity or experimentation. This balance is key for Europe to advance its digital transformation, integrating disruptive technologies with robust and sustainable protection standards. 

In short, MiCA not only lays the foundation for a safer and more transparent crypto market, but also catalyzes the development of new digital solutions, positioning Europe at the forefront of technological innovation in the digital age. Thus, regulation translates into opportunities for startups, institutional investors, and users, fostering a more dynamic, resilient crypto ecosystem that is better equipped to handle future industry advancements.

A commitment to digital sovereignty in the financial sector

In summary, the new private stablecoin from BNP Paribas and the group of European banks seeks to bridge the gaps in the current system and offer a robust alternative that drives innovation in financial transactions. 

By integrating this digital currency, banks aim to strengthen Europe's payments infrastructure with mechanisms that ensure greater security, efficiency, and regulatory compliance. Furthermore, by providing an environment conducive to technological evolution in the sector, this stablecoin will contribute to establishing a more resilient and autonomous system, capable of adapting quickly to the changing needs of the global market. 

Beyond the technical advancements, this project reflects Europe's ambition to consolidate a strong and competitive position vis-à-vis other economies, while maintaining control over financial flows and protecting sensitive data. It is a clear response to the urgent need for its own infrastructure, reducing dependence on external providers and increasing the continent's strategic capacity to face future challenges in the digitalization of financial services.