Europe Considers Ethereum or Solana for Digital Euro

Europe is moving ahead with plans for a digital euro, influenced by quick U.S. regulation of stablecoins. The Genius Act in Washington, which sets rules for stablecoins, has made EU officials rethink their digital euro plans. The digital euro has been discussed since 2021, but recent U.S. actions have raised new questions about technology, privacy, and competition.

U.S. Stablecoin Law Forces European Response

The Genius Act, signed by President Donald Trump in July, establishes a new standard by requiring issuers of dollar-pegged tokens to hold full reserves in liquid assets and adhere to licensing and reporting rules. For regulators, the challenge lies in safeguarding consumers without hindering innovation.

European authorities are watching these developments closely. If the U.S. framework gains global influence, the euro’s role in international digital payments could weaken. Widespread adoption of U.S. stablecoins may shift cross-border transactions away from euro-based channels.

This sense of urgency has led Brussels to speed up work on its own digital currency framework. Where the project had previously proceeded cautiously, policymakers are now exploring faster implementation and reevaluating earlier design decisions. Theoverarching concern is that the EU cannot afford to fall behind in the digital finance arena.

Public Blockchain Versus Private Ledger

A key question in the debate is whether the digital euro should run on a public blockchain such as Ethereum or Solana or remain on a private ledger controlled solely by the European Central Bank. This decision has both technological and geopolitical consequences.

Advocates for a public blockchain suggest it could support broader circulation, foster faster innovation, and strengthen the euro’s role as a global digital asset. Critics caution that public networks might expose sensitive transaction information and create privacy risks for citizens.

A private, ECB-managed system, on the other hand, would follow the model used by other central banks, including China with its digital yuan. It would allow for stricter control but might reduce adoption beyond the eurozone. Officials are carefully considering these trade-offs, aware that the choice of platform will affect the euro’s competitiveness for years.

Global Expansion of Euro

The digital euro is designed to support cash, modernize payment systems, and preserve European access to central bank money. Beyond domestic convenience, however, its structure could influence the euro’s role internationally. Currently, non-European companies handle around 68–72 percent of eurozone payment transactions, revealing a heavy reliance on foreign networks.

Some policymakers believe that using an open blockchain could strengthen the euro’s global reach and position it in international digital finance. Others warn that public networks might introduce risks Europe has long aimed to avoid, including cyberattacks and financial instability.

This discussion highlights a wider challenge in today’s monetary policy: balancing national control, innovation, and international influence. With the United States already advancing its digital currency agenda, Europe must ensure its approach is both secure and globally competitive.

Future of the Digital Euro

Europe’s path toward a digital euro is now more urgent than ever, driven by rapid developments in U.S. stablecoin regulation. The choice between a public blockchain like Ethereum or Solana and a private ECB-managed ledger will have lasting implications. Ultimately, Europe’s decisions in the coming months will determine not just how the digital euro functions domestically, but also how it asserts itself on the international stage.