Europe considers Ethereum and Solana for the issuance of their digital euro: report

By Hannah Pérez

The Central Bank of the European Union would be exploring Ethereum and Solana as an infrastructure for the issuance of its CBDC, in a change of focus of a private blockchain network towards a public.

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• European Central Bank would be exploring public blockchain networks for its CBDC.
• According to reports, consider Ethereum and Solana for the issuance of the digital euro.
• The officials would seek to counteract the influence of the dollar stable.
• The recent Genius Act legislation in the US promoted the Stablecoins market.
• The European Union of a definitive verdict on its digital euro project in October is expected to be expected.

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The European Union (EU) is evaluating innovative options for the development of its digital euro, exploring the use of networks Blockchain public as Ethereum and Solariuminstead of a private, As reported Friday the Financial Times (FT).

This decision represents a strategic turn in the design of the digital currency of the European Central Bank (ECB), driven by the need to reinforce the financial autonomy of the region against the growing acceleration in the global adoption of the Stablecoinslargely driven by the new US regulations.

A change towards public blockchain networks

The ECB, which has not yet defined the technological infrastructure for its Central Bank digital currency (CBDC), is considering implementing the digital euro in a Blockchain public, instead of a private, according to sources close to the project consulted by FT.

Unlike private block chains, which restrict access to data to authorized entities, public networks such as Ethereum and Solarium They offer universal transparency and accessibility, which could facilitate interoperability with other emerging digital platforms. This approach marks a potential milestone in the development of the digital euro, since the ECB is still in the preparation phase, with a final decision planned for October 2025, according to official bank information.

Counteracting the influence of Stablecoins

The exploration of public networks would respond, in part, to the pressure exerted by the recently approved legislation of Stablecoins In the United States, known as the “Genius Act”, which introduces for the first time in the country a framework to regulate a market of more than USD $ 280 billion, dominated in more than 98% by Tokens with parity to the US dollar.

Some of the ECB members have indicated that the current efforts of the European CBDC could help counteract this influence of Stablecoins dollar to protect the sovereignty of your financial system.

A digital euro “would limit the probability that stable currencies in foreign currency will be affected as a means of exchange in the euro area”, Said ECB’s member, Philip Lane, in March.“The digital euro is not just about ensuring that our monetary system adapts to the digital age. It is about guaranteeing that Europe controls its monetary and financial destinationin a context of growing geopolitic fragmentationA ”, added at that time.

A source consulted by the Financial Times He pointed out that a digital euro based on a Blockchain Private would resemble the model of the Chinese digital currency, while a public network would align it with the solutions developed by US private companies, as is the case of USDC of Circle; although in this case it would be a sovereign project.

Advantages and challenges of a public CBDC

Adopt one Blockchain Public could allow the digital euro to be more effectively integrated with the global block chain infrastructure, according to Juan Ignacio Ibañez, head of personnel of the personnel of the personnel of the DLT Science Foundationin statements to the news environment Cointelegraph.

However, this decision also raises challenges, as a greater state interest in the governance of these networks, which could generate tensions in terms of privacy and control. In this sense, the choice of public networks could raise concerns about privacy due to its transparent nature, an issue that remains central in discussions about the future of the digital euro.

The ECB has not yet officially confirmed if it is evaluating Ethereum either Solarium specifically, but a spokesman sent to Cointelegraph To the bank’s frequent questions, where it is indicated that the technological model of the digital euro is still in study.

Waiting for a decision about the digital euro

The EU has intensified its efforts to develop the digital euro in response to the new US legislation, which has strengthened the market of Stablecoins under the administration of Donald Trump, according to the Financial Times.

This movement reflects a growing concern for the dependence on foreign payment solutions. Meanwhile, the ECB continues its preparation phase, which includes technological tests with companies throughout Europe, and expects to make a definitive decision on the issuance of the digital euro at the end of 2025according to official information of the monetary authority.

The debate on the digital euro has also generated divisions in the European Parliament, where some sectors support a public solution, while others prefer a private approach, he reported The country In May.

As the EU advances in this project, the possible adoption of Ethereum either Solarium It would be the greatest institutional support for these projects while positioning the digital euro as a competitive and modern alternative against global digital currencies, although its success will depend on balance technological innovation with the demands of privacy and financial autonomy.

The European Investment Bank (BEI), an investment arm and development of the EU, has already chosen previously Ethereum for the issuance of bonds worth millions of euros.

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Article written with the help of AI, edited by Diariobitcoin

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