Bitcoin News Today: France Defies ECB, Backs Bitcoin as EU Regulations Hinder Stablecoin Expansion

USD Coin (USDC) has surged to a $76 billion circulating supply, driven by strategic partnerships and cross-chain integrations that underscore its role as a cornerstone of global crypto infrastructure. Circle, USDC's issuer, recently announced a collaboration with ClearBank to expand the stablecoin's use in Europe, leveraging the UK-based banking-as-a-service platform's payment rails to enable instant, low-cost fiat-to-stablecoin conversions, according to an ABC Money report. This move aligns with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework, which mandates stringent reserve transparency—a standard USDC has met through monthly Deloitte audits. The partnership aims to streamline international settlements for European businesses, with one analyst noting that USDC could reduce transaction costs by up to 90% compared to traditional systems, a detail the ABC Money piece also highlighted.

Meanwhile, regulatory uncertainty looms over the stablecoin sector in the EU. A clash between MiCA and the Payment Services Directive (PSD2) has created a compliance burden for firms, requiring dual licensing for stablecoin custody and transfer services. Circle's EU policy lead, Patrick Hansen, warned that failing to resolve this conflict by March 2026 could stifle euro stablecoin adoption and undermine MiCA's goal of unified regulation. The overlapping requirements—€125,000 minimum capital under MiCA and another €125,000 under PSD2—double operational costs, raising concerns about the EU's competitiveness in the global stablecoin race, a point Hansen emphasized in his comments.

France has taken a bold stance in this landscape, with lawmakers rejecting the ECB's digital euro proposal and endorsing Bitcoin and euro-denominated stablecoins as alternatives, according to a Yahoo News report. A resolution passed by the National Assembly criticizes central bank digital currencies (CBDCs) as threats to privacy and economic freedom, comparing the ECB's project to China's digital yuan. The proposal also advocates for a 2% national Bitcoin reserve, funded through energy-efficient mining and tax incentives, while urging Europe to reduce reliance on U.S.-denominated stablecoins like USDC and Tether's USDT. French regulators have separately intensified scrutiny of crypto exchanges, conducting anti-money laundering inspections on platforms like Binance as part of MiCA preparations, a point covered in the same Yahoo piece.

DeFi platforms are also reshaping stablecoin dynamics. Bybit's integration of native USDC transfers on Hedera's blockchain has boosted liquidity on the ESG-focused network, with inflows rising 25% post-announcement, as reported earlier by ABC Money. Similarly, Solana's ecosystem has seen a 750 million USDC minting, capitalizing on its high throughput to support DeFi applications and NFT marketplaces. However, the fragmented nature of stablecoin infrastructure remains a challenge. As of late 2025, USDC circulates across 15+ chains, while USDT spans eight, creating interoperability hurdles that complicate cross-chain transactions and liquidity management—an issue detailed in an Across blog post.

The "stablecoin bridge problem" has emerged as a critical pain point. A recent analysis highlighted how multiple token contracts for the same stablecoin—such as wrapped variants or chain-specific iterations—fragment liquidity and increase security risks. Solutions like intent-based bridging, where users specify transaction goals without manually selecting routes, are gaining traction. Protocols like Across aim to unify these processes, enabling seamless transfers across chains while abstracting technical complexities, as the Across blog post explores in depth.

As stablecoin adoption accelerates—from remittances in inflationary economies to institutional treasury operations—the industry faces a pivotal juncture. While regulatory clarity and technological innovation are driving growth, unresolved interoperability and compliance issues risk fragmenting the ecosystem. With USDC's market cap nearing $76 billion and DeFi platforms experimenting with high-yield products like MEXC's 600% APR BTC rewards, a CryptoBriefing report outlines how platforms are pushing yield boundaries, increasing the pressure to standardize cross-chain protocols and regulatory frameworks.

---