Ethereum News Today: Europe Pivots to Ethereum, Solana as Digital Euro Shifts Gears

The U.S. stablecoin legislation has triggered a reevaluation of the European Union’s strategy for the digital euro, as policymakers increasingly consider public blockchains such as Ethereum and Solana as potential platforms for the central bank digital currency (CBDC). The decision reflects a strategic shift from the previously favored private blockchain model, driven by concerns over global competition and the dominance of U.S.-backed stablecoins in cross-border transactions [2]. The Financial Times reported that European officials are now exploring decentralized networks to enhance the euro’s presence in the digital asset ecosystem and counterbalance the influence of U.S. dollar-backed tokens [2].

The U.S. Congress passed the GENIUS Act, which outlines a regulatory framework for the $288 billion stablecoin industry, dominated by tokens such as Tether’s USDT and Circle’s USDC. This move has intensified pressure on the EU to accelerate its digital euro initiatives and reconsider its technology choices. The legislation has prompted a reassessment of the ECB’s earlier preference for a private, centrally controlled system, with some officials now open to decentralized models that could enhance interoperability and global competitiveness [2]. The digital euro project, which has been under study for several years, aims to provide a public alternative to privately issued digital payment systems as cash usage declines [2].

European policymakers are particularly concerned about the dominance of U.S. dollar-backed stablecoins, which account for over 98% of the global stablecoin market. The reliance on these American assets raises questions about Europe’s financial independence and the euro’s role in a digitizing global economy. ECB board member Piero Cipollone has argued that the adoption of a trusted digital euro is essential to reducing dependency on foreign digital assets. The consideration of public blockchains is seen as a way to align the digital euro with global technological innovation and enhance its adoption among users [2].

However, the potential move to public blockchains also introduces new risks. A digital euro built on decentralized platforms could make governance more complex, with governments and other stakeholders playing a stronger role in shaping the rules of the system. Juan Ignacio Ibañez of the MiCA Crypto Alliance noted that while public blockchains offer better integration with existing crypto infrastructure, they also increase the potential for state influence over network governance [3]. These trade-offs are central to the ongoing debate within the ECB and among EU policymakers.

The ECB has not yet made a final decision on the technology or structure of the digital euro. An ECB spokesperson stated that no model has been chosen and that the Governing Council will decide by the end of 2025 whether the digital euro will be issued. The project remains in the exploratory phase, with the key question now being how to design a system that balances innovation, security, and sovereignty. This shift in focus from “if” to “how” the digital euro will be implemented reflects the urgency of the situation and the evolving global landscape of digital currencies [3].

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[1] Irish financiers fear US-EU divergence over crypto opens a gap for criminals (https://www.independent.ie/business/technology/irish-financiers-fear-us-eu-divergence-over-crypto-opens-a-gap-for-criminals/a266271595.html)

[2] U.S. Stablecoin Law Jolts EU Into Rethinking Digital Euro Strategy (https://www.coindesk.com/policy/2025/08/22/u-s-stablecoin-law-jolts-eu-into-rethinking-digital-euro-strategy-ft)

[3] The EU Shocks Crypto Markets by Exploring Ethereum and Solana for the Digital Euro (https://www.tipranks.com/news/the-eu-shocks-crypto-markets-by-exploring-ethereum-and-solana-for-the-digital-euro)