Ethereum News Today: Europeans Weigh Blockchain's Promise Against Privacy in Digital Euro Overhaul

The European Union is actively reconsidering the use of public blockchain networks for its digital euro initiative, with Ethereum and Solana emerging as potential candidates. This development follows the U.S. passage of the Genius Act, a regulatory framework for the $288 billion stablecoin market, prompting the EU to accelerate its digital euro strategy to maintain market competitiveness and financial autonomy. The shift reflects a broader strategic response to U.S. actions and a desire to integrate robust, transparent, and privacy-focused infrastructure into the digital euro design. EU officials are now exploring whether public blockchains—contrary to the private model currently used by the Chinese central bank digital currency—can better align with European financial and regulatory priorities [2].

Public blockchains like Ethereum and Solana offer open, transparent infrastructures compared to private networks, where access is restricted to authorized entities. This openness could enhance interoperability and reduce reliance on U.S.-dominated stablecoins such as those backed by the dollar, which currently account for 98% of the stablecoin market. A Financial Times report cited officials who stated that the ECB is “taking more seriously now” the use of a public blockchain model, which could represent a significant milestone in the digital euro’s development [4]. The potential shift also underscores concerns about maintaining European financial sovereignty amid the growing influence of U.S. stablecoins, especially under the Trump administration’s recent crypto policy moves [2].

Privacy considerations are a central factor in the EU’s deliberations. While public blockchains offer transparency, they also raise concerns about data protection and individual privacy. The European Central Bank (ECB) is balancing the need for secure and transparent transactions with the imperative to protect civil liberties. According to ECB Executive Board member Piero Cipollone, the digital euro should complement physical cash, offering citizens a range of payment options in both physical and digital forms. This approach aligns with broader policy goals of ensuring financial inclusion while safeguarding democratic values [2].

The consideration of Ethereum and Solana marks a significant shift from earlier discussions, which had largely focused on private blockchain solutions. Ethereum, with a market capitalization of $517.68 billion and 13.49% market dominance, has seen moderate volatility in recent weeks, including a 7.50% decline over the past seven days and a 14.81% increase over 30 days as of August 22, 2025. Analysts suggest that adopting public blockchains could reshape traditional banking structures, challenging existing control paradigms and potentially altering the dynamics of financial accessibility in Europe. However, the success of this strategy will depend heavily on the establishment of robust privacy and security frameworks that meet EU regulatory standards [2].

While the ECB has not yet confirmed its interest in Ethereum or Solana, the implications of such a move could be far-reaching. A digital euro built on public blockchain infrastructure could facilitate cross-border transactions, enhance financial transparency, and reduce dependency on U.S. dollar-based stablecoins. The decision, however, hinges on further consultations and technical evaluations. Experts emphasize that the final design will need to incorporate programmable safeguards, tiered anonymity models, and independent oversight mechanisms to ensure both security and compliance with European legal standards [1]. As the EU continues to refine its digital euro roadmap, the integration of public blockchains could signal a broader trend in global financial infrastructure modernization.

Source:

[1] A Comparative Legal Analysis of the EU, the US, and Russia (https://www.sciencedirect.com/science/article/pii/S2949791425000594)

[2] EU Revitalizes Digital Euro Plans Amid U.S. Stablecoin Bill (https://coincu.com/news/eu-digital-euro-blockchains/)

[3] Plans to force encrypted messaging apps like WhatsApp ... (https://www.facebook.com/GriptMedia/posts/plans-to-force-encrypted-messaging-apps-like-whatsapp-and-signal-to-give-garda%C3%AD-/134****038113054/)

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