The EU is accelerating the development of the digital euro to enhance competitiveness in the face of legal waves regarding stablecoins in the US.
MAIN CONTENT
The EU is accelerating the construction of the digital euro to compete with the USD in the stablecoin market.
The Genius Act in the US has a strong impact on the plans and strategies for the development of the digital euro.
The EU is considering operating the digital euro on public blockchains like Ethereum and Solana, rather than private blockchains.
What is the EU preparing for the digital euro in the new context?
The EU is actively adjusting its plans for the development of the digital euro to enhance competitiveness and align with new technological trends. Information published by the Financial Times on August 22 shows that the EU is making strong progress in refining this product.
The acceleration of digital euro development shows that the EU has a pragmatic approach to effectively meet the demands and challenges from the global cryptocurrency market, especially in the context of the US increasingly refining the legal framework for stablecoins.
How does the Genius Act in the US impact the digital euro?
The Genius Act, recently passed by the US Congress, tightly regulates the $288 billion stablecoin market, mainly running on USD, creating significant competitive pressure on the EU's digital euro.
Participants in the discussion stated that after this law was enacted, EU officials began to reassess and adjust the development plans for the digital euro to avoid falling behind in the global cryptocurrency race.
The Genius Act has completely changed the competitive landscape regarding stablecoins, pushing the EU to quickly refine its digital strategy.
Cryptocurrency market expert, 2024
Why is the EU considering choosing public blockchains like Ethereum or Solana for the digital euro?
Previously, the EU planned to build the digital euro on a private blockchain platform to enhance security. However, officials are now considering using public blockchains like Ethereum or Solana, due to concerns about privacy and scalability.
This shift aims to leverage a large, secure blockchain infrastructure with a strong developer community and wide interoperability, while ensuring the necessary transparency for the digital euro.
Using public blockchain helps increase transparency and the practical applicability of the digital euro in the modern financial environment.
EU official in charge of the digital euro project, 2024
Highlights in the EU's digital euro strategy compared to US stablecoins
Criteria for EU digital euro (EU) US Stablecoin Legal Framework Developing, focusing on security and privacy Clear regulations with the Genius Act enacted in 2024 Blockchain platforms Considering public blockchains like Ethereum, Solana Characteristics National digital currency, managed by central banks Stablecoin pegged to USD, primarily from the private market
Frequently Asked Questions
How does the digital euro differ from US stablecoins?
The digital euro is a cryptocurrency issued by the central bank, with strict management and developing technology on a public blockchain. US stablecoins are mainly issued by private organizations and are subject to regulation under the Genius Act.
Why did the EU choose Ethereum or Solana as the platform for the digital euro?
Ethereum and Solana are major public blockchains, highly secure, and support scalability, making the digital euro more transparent and flexible in governance and transactions.
How does the Genius Act affect the digital euro project?
The US Genius Act creates competitive pressure forcing the EU to accelerate progress and adjust strategies so that the digital euro can compete well in the global stablecoin market.
What is the EU doing to ensure privacy when using public blockchain?
The EU is researching technical and policy solutions to balance transparency and user privacy when using public blockchain for the digital euro.
When is the expected launch time for the digital euro?
Currently, the EU has not announced a specific timeline, but activities are being accelerated after the US passed new cryptocurrency stability laws.
Source: https://tintucbitcoin.com/eu-phat-hanh-euro-so-tren-ethereum/
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