The European Central Bank (ECB) is responding to claims about the digital euro potentially being implemented on public blockchains like Ethereum or Solana. The regulator states that various technologies are still under evaluation.
Acceleration of Digital Euro Implementation
Following the adoption of the stablecoin law in the US, European officials have decided to speed up their plans for a digital euro. The new regulation adds a $288 billion regulatory framework to the stablecoin market and raises concerns in Europe about the dominance of dollar-based tokens.
Discussion on Blockchain Technologies
European authorities, who previously considered private blockchains for the digital euro, are now looking at public blockchains as well. 'Everyone was surprised by how quickly the US passed the law. Now they're saying, 'We need to move faster,'' a source said.
Concerns About Europe's Financial Stability
ECB Executive Board member Piero Cipollone warned in April that 'Europe cannot be overly dependent on foreign payment solutions,' mentioning that dollar-based stablecoins pose a serious threat to Europe’s financial stability and strategic autonomy.
The ECB is currently evaluating various technologies for the digital euro, including centralized and decentralized solutions, with no final decision made yet.
