EU to Launch Digital Euro on Ethereum or Solana: Report

The European Union is moving closer to launching a digital version of the euro, and for the first time, it is exploring building on public blockchains like Ethereum or Solana. According to a Financial Times report, officials are considering these networks as powerhouses to issue a euro-backed stablecoin, a digital token tied to the value of the euro.

EU Races to Keep Up with U.S. Stablecoin Progress

The European Union’s decision to explore public blockchains marks a significant shift from earlier discussions. Previously, the bloc intended to run the digital euro on a private system managed by central banks. By using public blockchains, the EU could allow wider access, faster adoption, and stronger integration with existing crypto.

The Ethereum blockchain, reputable for its smart contract functionality and decentralization, is already home to thousands of applications and stablecoins. On the other hand, Solana is known for its high speed and low costs. This makes both networks strong contenders for handling millions of daily transactions.

The European Central Bank (ECB) isn’t entirely on board with the idea of launching a digital euro. Key members of the bank warned that if foreign stablecoins are widely used in Europe, the bank could lose some control over the financial system. They argue that this could make the ECB’s policies less effective.

However, the EU has pressed on with its plans. The urgency behind the move is partly due to the United States’ recent GENIUS Act. This regulatory move makes it easier for companies to embrace stablecoins. This regulatory clarity on dollar-backed stablecoins has moved various crypto-focused platforms to expand their stablecoin business to the U.S.

Policymakers in Europe fear that if dollar-linked tokens dominate the digital economy, the euro could lose influence globally.

By pushing the digital euro forward, the EU hopes to protect its monetary sovereignty and ensure the euro stays relevant in the fast-growing world of digital finance.

Privacy and Regulation Remain Big Questions

While the idea of a blockchain-based euro sounds promising, it also comes with challenges. Public blockchains are transparent, meaning all transactions can be viewed by anyone. 

This could raise concerns about privacy for European citizens. At the same time, regulators will need to ensure that the system follows anti-money laundering and identity-verification rules without making it overly complicated for users.

The European Central Bank is still exploring both centralized and decentralized models, and no final decision has been made. However, the fact that Ethereum and Solana are being seriously considered shows that Europe is open to modern, open-source solutions.

If approved, the digital euro could be one of the most important steps Europe takes in shaping the future of money, blending traditional finance with blockchain innovation while competing directly with dollar-backed stablecoins.

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