The EU Advances Digital Euro Plans, Considering Public Blockchains
The European Union is ramping up initiatives for the digital euro, contemplating public platforms like Ethereum and Solana to broaden accessibility. This move stems from growing concerns about the euro’s global standing amid increasing competition.
Recent U.S. stablecoin regulations and the surging popularity of digital currencies internationally have compelled the EU to expedite its plans. A Financial times report highlighted the urgency following the GENIUS Act, indicating the potential for the dollar to dominate the $288 billion stablecoin market even more, threatening the euro’s influence.
To counter this, the European Central Bank (ECB) is advancing a digital euro—an electronic version of cash for financial exchanges throughout the Eurozone. ECB executive board member Piero Cipollone noted that while cash will still be available, it “cannot meet today’s needs” without adapting to digital demands.
The ECB hopes this strategy will retain the euro’s relevance and accessibility in a digital era. Previously, the plan involved a private blockchain managed solely by the ECB, but now considers Ethereum and Solana to enhance global adoption.
- Ethereum and Solana could facilitate wider circulation.
- This shift aims to support international acceptance of the digital euro.
However, European banks express reservations, fearing reduced demand for traditional banking services. While the official launch date remains flexible, discussions point toward October 2025, subject to legislative clearance and regulatory compliance.
