The European Union is considering leveraging public blockchain networks such as Ethereum and Solana in the development of its long-awaited digital euro, signaling a potential shift in the European Central Bank’s (ECB) approach to digital currency infrastructure.
According to a report by the Financial Times, the ECB is actively assessing whether open, decentralized platforms could serve as the backbone of the digital euro, moving away from strictly private, centralized systems traditionally favored for state-controlled currencies. While no final decision has been made, officials have confirmed that the feasibility of public blockchain integration is under serious review.
Why the Shift? Preserving Sovereignty and Reducing U.S. Dependence
This move represents a strategic departure from models like China’s digital yuan, which operate on tightly controlled, private networks. EU policymakers see public blockchains as a tool to bolster financial sovereignty and limit reliance on U.S.-linked stablecoins—currently dominating 98% of the global market.
Piero Cipollone, an ECB executive board member, has repeatedly warned about the systemic risks posed by dollar-pegged stablecoins. A digital euro built on transparent, decentralized infrastructure could mitigate those risks while reinforcing European control over its monetary ecosystem.
Ethereum and Solana Under Evaluation
Ethereum and Solana are among the networks being studied for their ability to deliver transparency, security, and decentralization—key attributes seen as critical to user trust and innovation. However, the ECB has not yet committed to a particular technology framework. The bank remains in the preparation phase, with its third progress report released in July outlining regulatory developments and participation from nearly 70 market players testing use cases.
Next Steps and Legislative Hurdles
Any digital euro rollout will require approval from both the European Parliament and the Council, meaning political and legislative processes will dictate the timeline. The ECB has indicated the current preparatory stage will conclude by autumn, setting the foundation for possible implementation, though the project remains exploratory.
A Geopolitical Statement
The decision to consider public blockchains also carries geopolitical implications. It positions the EU as a potential regulatory innovator, aiming to create a digital currency that balances oversight with technological openness—unlike China’s closed CBDC model. This approach could pave the way for future cross-border interoperability and strengthen Europe’s role in global digital finance.
For now, whether Ethereum, Solana, or any other public blockchain becomes the backbone of the digital euro remains an open question. The ECB has not responded to inquiries on the matter, leaving industry watchers and crypto enthusiasts waiting for the next update.
