The European Central Bank (ECB) is contemplating the use of open blockchain networks for creating a digital euro, indicating a potential strategy shift.
Advantages of Open Blockchains
Utilizing open blockchains provides complete transparency and accessibility for all participants, unlike closed systems that restrict access. This would allow the euro to operate more effectively in the global market and align it more closely with U.S. stablecoins.
Geopolitical Context
European policymakers are increasingly vocal about the need to reduce reliance on U.S. dollar stablecoins. ECB Board Member Piero Cipollone stated that a digital euro could help diminish the usage of dollar-denominated stablecoins, which currently account for nearly 98% of the global market.
Future of the Digital Euro
Exploring public blockchain infrastructure indicates Europe's desire for transparency and a response to challenges posed by the U.S. and China in the digital currency landscape.
The potential implementation of open blockchains for the digital euro signifies significant changes in ECB's approach, which could influence the global digital currency market.
