Ethereum News Today: Europe Chooses Open Blockchains to Challenge Dollar-Dominated Finance

The European Union is actively considering the use of public blockchain networks, including Ethereum and Solana, as foundational infrastructure for its digital euro initiative, according to recent reports from the Financial Times and other sources [1]. This move marks a potential departure from earlier considerations of private blockchain models and could position the digital euro in contrast to the Chinese central bank digital currency (CBDC) approach, which operates on a closed network [1]. It also aligns the EU with the more open infrastructure seen in U.S. stablecoins, such as those issued by Circle [1].

The ECB has not yet finalized its decision on the technological framework for the digital euro, but officials have begun treating public blockchains with increased seriousness. A source with knowledge of the discussions noted that a digital euro on a private blockchain would resemble China’s CBDC more closely than the decentralized, dollar-pegged stablecoins prevalent in the United States [1]. The ECB’s Governing Council is expected to make a final decision on whether to proceed with the digital euro by the end of 2025 [1].

The decision to explore public blockchains comes amid growing concerns over the dominance of U.S. dollar-pegged stablecoins in global transactions, which account for nearly 98% of the market. These stablecoins, including Tether’s USDT and Circle’s USDC, are widely used in cross-border payments and are seen as strengthening the dollar’s influence in the global financial system [4]. In response, European officials have called for a digital euro that can interoperate with global blockchain infrastructure while preserving financial sovereignty [1].

Juan Ignacio Ibañez of the MiCA Crypto Alliance highlighted both the potential and the challenges of a public blockchain-based digital euro. On the one hand, such a design could better integrate with existing decentralized infrastructure, including decentralized finance (DeFi) protocols. On the other hand, it could also open the door to greater state influence over blockchain governance [1]. The debate reflects a broader tension between decentralization and regulatory control in the digital currency space.

In parallel with the ECB’s efforts, China has continued to expand its own digital currency initiatives, including the e-CNY, launched in 2019. The Chinese digital yuan operates on a centralized, government-controlled network and has been deployed in several cities, with state media reporting over 7.3 trillion yuan in transactions as of July 2024 [2]. Meanwhile, Hong Kong has moved to regulate stablecoins, requiring them to maintain reserves equal to their issued value, signaling a possible path toward a yuan-backed stablecoin [2].

The ECB has also pursued pilot projects, including a collaboration with the COTI blockchain to test confidential digital payment mechanisms for the digital euro [3]. These efforts aim to balance privacy with regulatory compliance, a critical concern for any CBDC.

As the EU weighs its options, the digital euro remains a strategic project with far-reaching implications for the future of European monetary sovereignty and the global financial landscape. The choice of a public blockchain could enhance interoperability and technological adoption but also introduce new governance and regulatory challenges [1].

Source:

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

[2] Why China is expanding into digital currencies (https://www.euronews.com/next/2025/08/21/why-china-is-expanding-into-digital-currencies)

[3] The ECB is Considering Ethereum and Solana for ... (https://www.cointribune.com/en/the-ecb-is-considering-ethereum-and-solana-for-the-digital-euro/)

[4] U.S. Stablecoin Law Jolks 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)