Ethereum, Solana in Focus as EU Pushes Forward Digital Euro Plan

TLDR

• The European Union is moving quickly to develop and launch a digital euro.
• The digital euro may be built on public blockchains such as Ethereum or Solana.
• The European Central Bank confirmed it is exploring both centralized and decentralized technologies.
• The United States recently passed the GENIUS Act to regulate dollar-pegged stablecoins.
• European officials are concerned about the growing dominance of US dollar-based stablecoins.

The European Union is accelerating development of the digital euro in response to the growing influence of US dollar-based stablecoins. Officials confirmed interest in launching the currency on public blockchains such as Ethereum or Solana. They view the digital euro as critical to defending the euro’s relevance in global and domestic financial systems.

Digital Euro on Public Blockchains

EU authorities are evaluating blockchain options for the digital euro, with Ethereum and Solana among the key platforms under review. The European Central Bank (ECB) confirmed it is exploring “both centralised and decentralised” solutions for implementation. A Financial Times report said the digital euro could be deployed on a public blockchain.

Public blockchain use could increase transparency, speed and accessibility across Europe’s financial systems. Ethereum and Solana are widely used for token issuance, decentralized finance, and stablecoins. Their scalability and established infrastructure make them leading candidates for such a rollout.

The ECB continues development efforts and is expected to present its digital euro prototype in 2025. Meanwhile, discussions on regulation and deployment models remain ongoing. The EU’s shift comes amid international digital currency competition.

US Regulation Spurs EU Action

The United States passed the GENIUS Act last month, offering clear rules for dollar-pegged stablecoins. President Trump signed it into law shortly after, signaling strong federal support for digital currency oversight. Officials now expect greater demand for US dollar-backed coins.

He warned about the risks of US stablecoins to Europe’s financial autonomy. This concern is driving EU momentum on the digital euro.

US-backed stablecoins now account for most of the $160 billion global stablecoin market. That dominance alarms EU regulators. The US’s regulatory clarity gives it an edge in setting the global crypto agenda.

China Eyes Yuan-Backed Stablecoins

Beijing is also preparing for a digital shift, planning yuan-backed stablecoins to counter the dollar’s dominance. Chinese regulators see potential for digital yuan tokens to increase cross-border usage. This would support China’s long-term currency internationalization strategy.

Yuan-based tokens could offer alternatives to Ethereum or Solana-powered dollar stablecoins. Officials are reviewing private-sector pilots for yuan tokens on permissioned blockchains. They seek competitive solutions that challenge existing US dollar infrastructure.

China joins the EU in pushing for native stablecoin growth to protect financial sovereignty. The digital euro, Ethereum, and Solana stand central in Europe’s crypto strategy. Together, they mark a new phase in digital currency competition.

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