Latest considerations by EU officials exploring the deployment of the digital euro on Ethereum or Solana chains
Why choose public chains?
Public blockchains, such as Ethereum and Solana, are known for their transparency, decentralization, and immutability. The European Central Bank believes that establishing the digital euro on these open networks can provide a solid foundation for financial innovation. This means that third-party developers can build various services and applications on this platform, thereby promoting a more vibrant digital economic ecosystem.
What does this mean for the digital euro?
Innovation potential: The openness of public chains will encourage innovation, such as the creation of smart contracts, decentralized finance (DeFi) applications, and cross-border payment solutions, all based on the digital euro.
Technical maturity: The European Central Bank's assessment of Ethereum and Solana shows that these networks are technically quite mature and capable of handling large-scale transactions.
Challenges and risks: Although public chains have many advantages, the European Central Bank is also acutely aware of the potential challenges. These include issues of privacy protection, cybersecurity, and compliance with laws and regulations. These risks must be carefully considered by any digital currency issuance project.
What is the next step?
The European Central Bank is currently in the exploration phase and has not made a final decision. Next, they will continue to delve into the technical feasibility and potential risks of these public chains to ensure that the digital euro can operate safely and efficiently after issuance and complies with the EU regulatory framework.
In summary, the European Central Bank is actively assessing the feasibility of issuing the digital euro using existing public blockchain technology, indicating their open attitude towards blockchain technology and their proactive exploration of the future of digital finance.