France proposes regulated stablecoin rewards to boost euro competitiveness

Four French financial authorities—the General Directorate of the Treasury, the AMF, the Bank of France, and the ACPR—have proposed allowing third-party stablecoin rewards under specific conditions. This move opposes the stance of the European Central Bank (ECB), which favors a broader ban to prevent stablecoins from functioning as savings products and causing bank deposit outflows.

The French authorities argue that rewards provided by platforms, such as exchange platforms, should be “regulated rather than simply banned, as they tend to develop in any case.” They suggest that such mechanisms can lower the cost of holding e-money tokens and support extended financial services. A primary motivation is to strengthen the competitiveness of euro-denominated stablecoins against dollar-backed rivals.

To mitigate risks, the proposal includes several safeguards: platforms must clearly explain the origin and conditions of rewards, no guaranteed yields may be promised, products must not be marketed as savings solutions, and authorities must monitor the impact on traditional bank deposits. The European Commission is expected to present a report on the revision of the Markets in Crypto-Assets (MiCA) regulation by June 2027.