- The European Union is considering issuing a digital euro on public blockchains like Ethereum or Solana to speed up its entry into the digital currency space.
- The U.S. has recently passed a stablecoin law, increasing pressure on Europe to advance its digital euro initiative.
- Deploying the euro on public blockchains could expand its global use, but officials remain concerned about privacy, regulation, and banking stability.
- There are ongoing discussions within the EU’s institutions, with no final decision on whether to use decentralized or centralized technology.
- Privacy, governance, and the risk of destabilizing European banks are key issues policymakers are still debating.
European officials are weighing the possibility of issuing the digital euro, a central bank digital currency, on public blockchains such as Ethereum or Solana. The move comes as the United States recently approved a stablecoin law, giving dollar-backed digital tokens an early advantage in global finance.
According to statements from OpenLedger contributor Ram Kumar, using public blockchains could greatly increase the reach of the digital euro. Kumar told Decrypt that this approach would enable the euro to be used instantly across decentralized finance (DeFi) platforms, global wallets, and international payments. He explained that “It would open the euro to the wider crypto economy instantly” and noted that platforms like Ethereum provide programmability, while Solana offers low fees and can support high numbers of transactions.
The debate follows recent developments in the U.S., where lawmakers passed the “GENIUS Act” to regulate dollar stablecoins. Kumar said this has pushed the EU to accelerate its own plans, saying “If the dollar gets a head start in digital payments, it risks overshadowing the euro in global finance.” An EU Commission spokesperson added that the proposed digital euro regulation is technology-neutral and that discussions are still underway with the European Parliament and Council.
However, the idea of putting the digital euro on a public blockchain raises several risks. Privacy is a top concern due to possible conflicts with the EU’s GDPR privacy rules, which include strong protections for personal data and the right to have data erased. The European Central Bank also wants the digital euro to maintain the same level of Anonymity as cash, which is harder to guarantee on public, transparent blockchains.
Technical issues remain, including network limits on Ethereum, reliability concerns on Solana, and the challenge of keeping control over blockchain upgrades and validators, which would not be directly managed by governments. Policymakers have warned that a widely accessible digital euro could lead people to withdraw funds from banks if not carefully managed.
In April, ECB executive board member Piero Cipollone cautioned that U.S. stablecoins could pull deposits from European banks and strengthen the dollar globally. Cipollone also wrote that moves by the U.S. administration to promote cryptocurrencies and dollar-backed stablecoins may threaten financial stability and Europe’s strategic autonomy.
An ECB spokesperson confirmed that the digital euro could be technically ready within three years after new legislation is approved. The official added that both centralized and decentralized technologies are being tested, but “A decision has not yet been taken.”
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Cardano (ADA) Eyes $1 as Fed Rate Cut Hopes Fuel 5% Rally
- Ewha Womans University Adopts Theta EdgeCloud Hybrid for AI Research
- Hut 8 to Build Four New Bitcoin Mining Sites, Adding 1.5GW Capacity
- Citrix Patches Critical NetScaler RCE Flaw Amid Active Attacks
- CME XRP Futures Hit $1B Fastest Ever as Gemini Tops Coinbase App
