Ethereum News Today: EU Eyes Ethereum and Solana to Challenge Dollar-Dominated Stablecoin Era

The European Union is accelerating its development of a digital euro, with the European Central Bank (ECB) reportedly exploring the use of public blockchain networks like Ethereum and Solana for its implementation. Unlike private blockchains, which restrict data access to authorized entities, public blockchains are open to everyone, offering transparency and broader accessibility. This shift reflects growing concerns over the dominance of U.S. dollar-pegged stablecoins in the global stablecoin market, which currently account for 98% of the sector. The ECB sees public blockchain adoption as a strategic move to protect the eurozone's financial autonomy and ensure a digital currency that mirrors the characteristics of cash in a digital format [1].

The rationale for the digital euro centers on preserving the role of public money as cash use declines. Between 2019 and 2024, cash's share of eurozone payments dropped from 68% to 40% in volume and from 40% to 24% in value. According to ECB Executive Board member Piero Cipollone, the digital euro would complement physical cash, ensuring secure, inclusive, and private digital payments while safeguarding monetary sovereignty. The ECB has emphasized that the digital euro is not a tool for geopolitical competition but a domestic retail payment solution aimed at meeting the evolving needs of consumers and businesses [2].

The U.S. has also been actively shaping the digital asset landscape with the passage of the GENIUS Act in July 2025, which establishes a regulatory framework for stablecoin issuance. The U.S. Treasury has since requested public comments on the act, focusing on innovative methods to detect illicit digital asset activity, such as through artificial intelligence and blockchain analytics. These efforts reflect a broader strategy to support responsible crypto growth while reinforcing U.S. leadership in digital financial technology. The legislation includes provisions for transparency, reserve requirements, and anti-money laundering measures, which are expected to influence the development of stablecoins and, by extension, the global digital asset ecosystem [3].

The potential adoption of public blockchains like Ethereum and Solana for the digital euro has sparked discussions on the merits of each platform. Ethereum, the most established smart contract platform, is known for its large developer ecosystem and robust security, while Solana offers high throughput and low-cost transactions, making it suitable for high-frequency trading and real-time applications. The ECB's interest in exploring these networks indicates a desire to balance scalability with decentralization and security. While Ethereum's extensive use in stablecoin issuance—accounting for 51% of the market—suggests its relevance to the ECB’s digital euro plans, Solana’s performance advantages could support the digital euro’s goals of accessibility and efficiency [4].

Despite these advancements, the ECB has yet to finalize the technical framework for the digital euro, and no official confirmation has been issued regarding the consideration of Ethereum or Solana. The digital euro project is still in the preparation phase, with a timeline extending to October 2025. Following this, the ECB's Governing Council will decide whether to proceed based on completed legal and political processes. A realistic launch window is expected between 2027 and 2029, with some central bank officials suggesting 2028 or 2029 as more likely. The digital euro will likely operate through a digital wallet provided by banks or public authorities, enabling instant, free, and privacy-protected transactions both online and offline [2].

Source:

[1] EU exploring Ethereum, Solana for digital euro launch (https://cointelegraph.com/news/europe-mulls-ethereum-solana-digital-euro-launch)

[2] 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)

[3] Treasury Issues Request for Comment Related to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act (https://home.treasury.gov/news/press-releases/sb0228)

[4] JPMorgan Says Ethereum Is Poised for 'Meteoric' Growth (https://finance.yahoo.com/news/jpmorgan-says-ethereum-poised-meteoric-201517239.html)