TL;DR
- Reports indicate that the European Union is considering Ethereum and Solana as possible infrastructures for its planned digital euro.
- The move signals a preference toward open public blockchains over closed private systems, contrasting sharply with China’s CBDC model.
- Analysts say such a decision could strengthen Europe’s financial sovereignty, improve interoperability with global crypto markets, and reduce reliance on U.S. stablecoins, which currently dominate the digital asset ecosystem.
The European Central Bank is reportedly evaluating Ethereum and Solana as technological bases for the upcoming digital euro. According to the Financial Times, officials are becoming more open to the idea of issuing Europe’s central bank digital currency on a public blockchain rather than on a permissioned or fully private system. This would mark a remarkable departure from the Chinese approach, where the digital yuan operates within a tightly controlled network.
Unlike private infrastructures, public blockchains allow open access, ensuring transparency and global compatibility. If the EU adopts this route, the digital euro could benefit from integration with decentralized finance applications and the broader crypto economy. Advocates argue that this would place Europe at the forefront of financial innovation, making its CBDC more attractive to both institutional players and retail users.
Europe Considering Competitive Crypto Ecosystem
Discussions within the ECB suggest that regulators want a CBDC design that competes effectively with stablecoins like USDC and USDT, which are overwhelmingly dollar-backed. Officials are concerned that Europe’s financial system risks overexposure to U.S. monetary influence if stablecoins remain the dominant tool for cross-border settlements. By leveraging Ethereum or Solana, the EU could reduce dependence on external systems and reinforce its monetary autonomy.
Additionally, a public blockchain-based digital euro could provide stronger interoperability with Europe’s growing Web3 sector. This would make it easier for fintech companies and startups to integrate payment solutions, boosting innovation within the region. Some policymakers also see potential advantages for faster settlement across borders, improving efficiency in the Single Market.
Public Blockchain Debate Gains Momentum
Critics warn that adopting a public blockchain could give European authorities greater influence over decentralized networks, sparking questions about governance and censorship. However, industry experts highlight that transparency and security in open ledgers outweigh such risks. They argue that by embracing existing blockchain ecosystems, the EU would avoid building isolated systems that could quickly become outdated.
The ECB has not yet made a final decision. According to official timelines, the Governing Council is expected to announce by late 2025 whether a digital euro will move forward. If public networks like Ethereum or Solana are chosen, Europe’s CBDC could become the first major central bank currency integrated into a truly decentralized ecosystem.
