The EU is considering a digital euro on a public blockchain like Ethereum or Solana. This strategic shift could reshape digital finance and bolster the EU's monetary sovereignty. What are the implications for investors and the crypto market?
The European Union is considering launching its digital euro, the tokenized version of its single currency, on a public blockchain like Ethereum or Solana. This decision could not only transform the future of European digital currency but also redefine the geopolitical balance of cryptocurrencies.
According to a Financial Times investigation, the European Commission is seriously studying the option of issuing a digital euro on Ethereum or Solana, abandoning the idea of a private blockchain. This choice reflects a desire for transparency, interoperability, and widespread adoption.
This choice of a public blockchain demonstrates that European regulators have realized that to win the global stablecoin race, they must leverage infrastructure already widely adopted by crypto users.
This decision comes in reaction to the accelerated adoption of the GENIUS Act in the United States, a regulatory framework favorable to stablecoins that has already propelled the tokenized dollar ecosystem globally.
Today, euro-backed stablecoins represent only an insignificant fraction compared to giants like USDT or USDC. This problematic lag could:
In this sense, making the digital euro a public blockchain project is also a political and economic lever in favor of European crypto autonomy.
But this technical choice also raises concerns:
Facing these challenges, the European Central Bank will likely propose a “semi-permissioned” model, leveraging smart contracts while maintaining strict regulatory control.
In conclusion, the potential launch of a digital euro on Ethereum or Solana represents a historic advancement for crypto regulation in Europe. It symbolizes a strategic shift toward open finance and perhaps marks the beginning of a new era: that of a common currency firmly anchored in the blockchain age.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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