- European Union officials are considering accelerating plans for a digital euro in response to new U.S. stablecoin regulations.
- The U.S. Congress passed the GENIUS Act, outlining guidance for the $288 billion stablecoin market led by Tether‘s USDT and Circle’s USDC.
- Officials in Europe are now open to using public blockchains, such as Ethereum or Solana, for the digital euro project.
- The European Central Bank continues to weigh both centralized and decentralized technology options for the central bank digital currency.
- The move comes as other regions, including China and the U.K., advance their own digital currency efforts.
The European Union is considering speeding up the development of a digital euro after the United States introduced new legislation for stablecoins. U.S. lawmakers passed the GENIUS Act last month, creating a regulatory framework for the $288 billion stablecoin market, which is dominated by U.S. dollar-pegged tokens such as Tether’s USDT and Circle’s USDC.
According to the Financial Times, the move surprised EU policymakers, causing concern about the euro’s role in cross-border payments. European officials are now discussing whether to launch the digital euro using public blockchain platforms like Ethereum or Solana, which would be a significant change from earlier plans using private, centrally controlled networks.
Previously, the European Central Bank (ECB) supported using private infrastructure due to privacy and security concerns. However, the passage of U.S. stablecoin regulation has led some EU policymakers to consider public blockchain systems, which may help the euro compete globally with dollar-based digital assets.
The ECB has studied a digital euro for several years as a public alternative to private payment providers, especially as cash use declines. According to the Financial Times, officials are worried that without a strong digital euro, deposits could shift from euro accounts to U.S. dollar-denominated tokens abroad.
Alongside this, China is piloting its own digital yuan and the U.K. is exploring a digital pound, putting the EU under added pressure. While some euro-backed stablecoins, like Circle’s EURC, already exist, a version issued by a central bank would have greater influence.
The ECB confirmed that it is still considering both centralized and decentralized solutions for the digital euro, keeping the option open for a blockchain-based European currency as efforts continue to preserve the euro’s significance in the digital economy.
For more analysis, see ECB Says U.S.-Backed Stablecoin Use in EU Could Weaken Its Monetary Autonomy.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
