Ethereum News Today: Europe Bets on Public Blockchain to Reinvent Cash for the Digital Age

The European Union is exploring the use of public blockchain networks like Ethereum and Solana for the development of its digital euro, according to reports citing sources within the European Central Bank (ECB) [1]. This move contrasts with the approach of China’s central bank digital currency (CBDC), which operates on a private blockchain. Public blockchains offer an open, decentralized structure, allowing broader participation and transparency compared to private systems that limit access to authorized entities. The ECB has not yet officially confirmed its interest in Ethereum or Solana, but discussions indicate that the technology framework for the digital euro is under active review [1].

The ECB has emphasized the digital euro’s purpose: to preserve the role of cash in a digital economy, ensuring secure and inclusive payments while protecting the eurozone’s financial sovereignty [2]. With the increasing dominance of U.S. stablecoins, which account for 98% of the global stablecoin market, European officials have raised concerns about the risks associated with relying on foreign payment systems [1]. ECB Executive Board member Piero Cipollone has warned that the declining use of cash is being filled by non-European platforms, which could undermine the ECB’s role in everyday financial transactions [2].

A digital euro would function similarly to cash but in a digital format, offering instant, free, and offline-capable transactions through a digital wallet [2]. The ECB plans to ensure privacy by not tracking user data or purchase histories, aligning it with the characteristics of cash. The initiative also aims to prevent the dominance of private payment systems and foreign platforms in the eurozone’s financial infrastructure [2]. According to a recent report, nearly 30% of small and medium-sized enterprises in the eurozone prefer cash as a payment method, with higher percentages in countries like Austria and Italy [2]. This trend highlights the continued relevance of cash and the need for a digital alternative that maintains the same level of trust and accessibility.

The ECB is currently in the preparation phase of the digital euro project, which is set to conclude by October 2025 [2]. Once the legislative process is finalized, the Governing Council will decide on the next steps. A full rollout is expected to take two to three years, placing the potential launch window between 2027 and 2029 [2]. ECB President Christine Lagarde has stressed the importance of passing the legal framework as soon as possible to ensure the project’s continuity. The digital euro is not intended to challenge the U.S. dollar’s global dominance but rather to reinforce the euro’s position within Europe by providing a sovereign, public digital payment option [2].

The ECB has acknowledged the broader implications of the digital euro for financial competition and innovation. By creating open standards for merchants and payment service providers, the digital euro could foster greater competition and reduce the influence of private companies on payment fees [2]. Additionally, its offline functionality would provide a reliable payment method in emergencies, such as natural disasters or power outages. The ECB has also highlighted the importance of maintaining monetary sovereignty in an increasingly digital economy [2]. As cash use declines, the central bank aims to ensure that sovereign money remains a central component of daily transactions.

Source:

[1] EU exploring Ethereum, Solana for digital euro launch: FT (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] Europe's currency of the future must not become China's e... (https://medium.com/enrique-dans/europes-currency-of-the-future-must-not-become-china-s-e-cny-8c43df1d5595)