EU Considering Ethereum and Solana for Digital Euro Launch

The European Union is reportedly exploring the possibility of using major public blockchain networks, including Ethereum and Solana, for the development of its digital euro. According to a report by the Financial Times on Friday, the European Central Bank (ECB) is evaluating whether the currency could run on an open, public blockchain instead of a private, restricted system.

Private blockchains are controlled environments that allow limited access to only authorized entities. On the other hand, public blockchains such as Ethereum and Solana allow everyone to participate while offering improved accessibility and transparency. If adopted by the European Union, this will mark a significant shift in the European Central Bank’s approach. However, the ECB has yet to confirm the technology it will use for the digital euro.

Sources close to the project reveal that the officials are “taking public blockchains more seriously.” One insider suggested that a private blockchain model would mirror China’s central bank digital currency system, which prioritizes state control. In contrast, using a public blockchain would resemble the approach of U.S. companies like Circle, which issue stablecoins backed by the U.S. dollar.

Important Reads: SEC Recognizes Certain USD Stablecoins as Cash Equivalents in Updated Accounting Guidance

European policymakers are becoming more worried by the fact that U.S. dollar-pegged stablecoins make up 98% of the market. Piero Cipollone, a member of the ECB's executive board, said in April that a digital euro may help Europe become less dependent on stablecoins backed by other countries, which would protect Europe's financial independence.

Even while there has been a lot of talk, the ECB has not said for sure which blockchain will be used for the project, whether it is Ethereum, Solana, or another one. Cointelegraph said that the central bank did not answer calls for comments on the issue.

As Europe is ready to launch a digital euro, the decision could affect the continent's digital currency policy in the future by balancing openness, independence, and new ideas.