Ethereum News Today: EU Considers Ethereum, Solana for Digital Euro Sovereignty Play

The European Union is intensifying its push to establish a digital euro, with Ethereum (ETH) and Solana being considered as potential platforms to underpin the project. The development comes amid growing concerns over the dominance of U.S. dollar-backed stablecoins and increasing competition from other global central bank digital currency (CBDC) initiatives. According to a Financial Times report, the European Central Bank (ECB) is exploring the use of public blockchain networks, such as Ethereum and Solana, to facilitate the digital euro, shifting from earlier plans that leaned toward a private, centrally controlled system [2]. This marks a significant development as the ECB has yet to finalize the technological framework for the digital euro project [2].

The ECB has long emphasized the need for a digital euro to preserve the role of public money in a rapidly digitizing economy, where cash use is declining and private payment systems—often controlled by non-European entities—are becoming increasingly prevalent. ECB Executive Board member Piero Cipollone has repeatedly stressed that without a digital alternative, the ECB risks losing its core role in everyday financial transactions and ceding ground to non-European platforms [1]. Between 2019 and 2024, the share of cash in eurozone payments fell sharply, from 68% to 40% in volume and from 40% to 24% in value [1].

A public blockchain-based digital euro could offer several advantages, including improved interoperability with existing decentralized infrastructure and enhanced flexibility in transaction processing. According to Juan Ignacio Ibañez, general secretary of the MiCA Crypto Alliance, a public model could better integrate with the blockchain networks already in development, although it could also raise concerns over state influence in blockchain governance [2]. Meanwhile, the ECB’s previous inclination toward a private system was driven by concerns over privacy and data control. However, the evolving global landscape—marked by the U.S. passage of the GENIUS Act and China's pilot digital yuan—has prompted a reevaluation [3].

The potential shift to a public blockchain could also affect the digital euro’s role in global finance. While the ECB has been clear that the digital euro is primarily a domestic retail payment tool and not intended to challenge the U.S. dollar as a global reserve currency, the move could enhance the euro’s competitiveness in cross-border transactions. As of the first quarter of 2025, the U.S. dollar accounted for 53% of global foreign exchange reserves, while the euro held 20.06% [1]. The ECB has acknowledged the importance of maintaining the euro’s relevance in a world increasingly shaped by digital assets and global financial shifts.

Despite the growing interest in public blockchain options, the ECB has yet to make a final decision on the digital euro's technological architecture. The Governing Council is expected to issue a decision by the end of 2025, after which a development phase could last between two to three years, with a potential launch window between 2027 and 2029 [1]. The digital euro would function as a risk-free, publicly accessible alternative to commercial digital payments, with instant, fee-free transactions available both online and offline. Privacy protections would be a key feature, with user data safeguarded from tracking or misuse by third parties.

The ECB has also signaled that the digital euro would not be a tool for geopolitical competition but rather a means of strengthening financial sovereignty and consumer choice within the eurozone. As the project moves forward, the EU’s exploration of public blockchains like Ethereum and Solana could represent a pivotal step in shaping the future of digital payments in Europe.

Source: [1] Cash is king: Why does the eurozone need a digital euro? (https://www.euronews.com/business/2025/08/20/cash-is-king-why-does-the-eurozone-need-a-digital-euro) [2] EU exploring Ethereum, Solana for digital euro launch: FT (https://cointelegraph.com/news/europe-mulls-ethereum-solana-digital-euro-launch) [3] U.S. Stablecoin Law Jolts EU Into Rethinking Digital Euro ... (https://www.coindesk.com/policy/2025/08/22/u-s-stablecoin-law-jolts-eu-into-rethinking-digital-euro-strategy-ft)