The European Union is reportedly exploring major public blockchain networks including Ethereum and Solana in connection with its digital euro design.
The European Central Bank (ECB) is considering running a digital euro on a public blockchain like Ethereum rather than a private one, the Financial Times reported on Friday, citing people familiar with the matter.
Unlike a private blockchain, where data is limited to authorized entities, public blockchains like Ethereum or Solana are open to everyone.
If confirmed, the EU’s exploration of public blockchains would represent a significant milestone in the digital euro’s development, given that the ECB has not yet finalized the technology framework for the project.
Public model compared to US stablecoins
The use of a public blockchain is “definitely something that [EU officials are] taking more seriously now,” one of the people involved in the digital euro discussions told the FT.
Another person said a digital euro in a private form would look “much more like what the Chinese central bank is doing than what private companies in the US are doing.”
The person specifically referred to China’s central bank digital currency (CBDC), deployed privately, as opposed to public-run stablecoins developed by companies like Circle.
Europe to respond to US stablecoin push
Europe has been increasingly concerned about the US stablecoin push promoted by the Trump administration and its implications for the autonomy of the European financial system.
In April, ECB Executive Board member Piero Cipollone called for cutting stablecoin usage in Europe by introducing a digital euro, citing adoption risks of the US dollar-pegged stablecoins, which dominate the stablecoin market at 98%.
A spokesperson for the ECB did not explicitly confirm or deny that the bank has started exploring specific public networks such as Ethereum or Solana for a digital euro.
The representative referred to an official ECB page with frequent questions related to a digital euro, which states that the authority has yet to decide on what CBDC model would be deployed.
Both positive and negative implications
Should the EU eventually opt for a public digital euro design, there would be both positive and negative implications, according to Juan Ignacio Ibañez, general secretary of MiCA Crypto Alliance.
“On the positive side, there is potential for a public-blockchain-based digital euro to interoperate better with all the infrastructure being developed on blockchain these years,” Ibañez told Cointelegraph. On the negative side, this would introduce a “stronger state interest in influencing blockchain governance,” he said.
Related: US House adds CBDC ban to massive defense policy bill
The ECB has yet to decide whether to proceed with the digital euro project.
According to official ECB information, the ECB Governing Council is expected to deliver a decision on whether to issue a digital euro by the end of 2025.
Related: China weighs yuan-backed stablecoins in major policy shift: Reuters
Magazine: Can privacy survive in US crypto policy after Roman Storm’s conviction?
