In response to the dominance of the US dollar stablecoin in the digital payments arena, European finance giants, led by BNP Paribas, have formed a ten-bank consortium to launch a euro-backed stablecoin alternative.

This initiative represents a strategic pivot by Europe’s traditional finance sector to establish a secure, native digital payment standard.

Crucially, it is being built specifically to meet the strict requirements of the EU’s landmark MiCAR regulation.

Europe’s stablecoin push

The consortium is making a bold play for digital autonomy by anchoring the digital euro economy within the credibility of systemic banks like BNP Paribas, ING, and UniCredit.

It will also reframe the stablecoin challenge as an opportunity for regulated financial integration.

The initiative is explicitly designed to serve as a European alternative to the dollar-backed stablecoin market. 

Operating “on-chain,” these solutions will leverage blockchain technology to offer secure, reliable, and compliant payment methods.

In this plan, BNP Paribas will focus on identifying and testing concrete use cases with its corporate clients. This will help prioritize regulatory compliance and long-term sustainability.

The secret weapon

Qivalis, a newly established Amsterdam-based entity, will spearhead the strategic initiative and position itself as a symbol of trust, regulatory discipline, and institutional strength.

CEO Jan-Oliver Sell, the former head of Coinbase Germany, and Howard Davies, former chair of NatWest, will oversee the board and add significant governance experience and regulatory authority.

With this leadership in place, Qivalis targets a second-half 2026 launch.

However, to reach this milestone, the organization must secure an Electronic Money Institution (EMI) license from the Dutch central bank and scale its workforce by hiring 45 to 50 specialists over the next 18 to 24 months.

Throughout this process, the Qivalis consortium will face pressure from two major forces: the U.S. dollar’s dominance in stablecoins and the European Central Bank’s push for a digital euro.

U.S. and China’s stablecoin approach

Talking of the current dynamics, the U.S. aggressively promotes dollar-backed stablecoins. It argues that global adoption will strengthen the dollar, boost demand for Treasuries, and lower long-term rates.

In fact, policymakers in the States are even projecting stablecoin demand to reach $3 trillion by 2030.

But history shows that dollarization triggers political and economic backlash, drives countries to defend their monetary sovereignty, and accelerates efforts to reduce dependence on the dollar.

China, meanwhile, treats stablecoins as a direct threat to its currency controls and has intensified its crackdown.

The PBoC, along with 13 agencies, has also recently targeted stablecoins used for illicit transfers and capital flight.

Therefore, by forming Qivalis, Europe creates protection against both U.S. dollarisation and China’s currency clampdowns.

Final Thoughts

• Dollar dominance and China’s crackdowns are making a European-controlled stablecoin not just desirable but necessary for autonomy.
• Despite being backed by ten major banks, Qivalis will operate independently of its member institutions.

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Author: Ishika Kumari