The recent U.S. Genius Act, which introduced comprehensive stablecoin regulations, has accelerated the European Commission and ECB's push to launch a digital euro. Officials are wary of a strengthening dollar-backed token ecosystem and want to preserve the euro’s global relevance and financial autonomy.
Christine Lagarde, President of the ECB, has urged the European Parliament to quickly pass legislation that enables the digital euro, citing it as essential for Europe’s monetary sovereignty.
From Closed to Open: A Major Technical Shift
Previously, a private and centralized blockchain model—similar to China's digital yuan—was expected to be the foundation. But public blockchains are now being actively considered due to their broader accessibility and ability to stimulate adoption.
Ethereum and Solana have emerged as top contenders. Their decentralized nature, existing infrastructure, and developer ecosystems make them attractive alternatives.
Advantages of a Public Blockchain Digital Euro
Greater Adoption: Deploying the digital euro on Ethereum or Solana allows broader access, turning it into a cross-border digital asset—not confined to a closed system.
Transparency & Interoperability: Public blockchains could easily integrate with wallets, DeFi platforms, and cross-border financial tools already built on these networks.
Strategic Autonomy: The move signals a stance against reliance on non-European payment infrastructures and ensures the euro remains relevant in a tokenized future.
Privacy Remains a Major Concern
Public blockchains expose transaction data, which conflicts with Europe’s strong privacy norms. The transparent nature of platforms like Ethereum and Solana raises serious concerns about surveillance and data protection.
A balanced solution is needed—one that provides broad economic participation while safeguarding user confidentiality and limiting government oversight.
What This Could Mean Going Forward
The decision is still in flux—no final choice has been made. The ECB is examining multiple options, including distributed ledger technologies and centralized models.
As debates continue, Europe faces a defining opportunity: to create a digital euro that is both innovative and privacy-respecting, capable of thriving in the decentralized finance landscape.
In short: The digital euro project is undergoing a strategic pivot—from a closed, private digital currency to a potentially open, interoperable one underpinned by public blockchains. Whether built on Ethereum, Solana, or another system, the final decision will reshape Europe’s digital payment infrastructure for years to come.
