EU Considers Ethereum, Solana for Digital Euro

Akash Kumar

• August 23, 2025
• ⋅
• 2 min read

The European Union is weighing public blockchain solutions such as Ethereum and Solana for its planned digital euro—a move that signals a major departure from private central bank digital currency (CBDC) models like China’s. As the European Central Bank (ECB) considers technology frameworks, the adoption of public blockchains could shape the continent’s future financial infrastructure and help counteract US stablecoin dominance.

Public Blockchains Gain Traction for Digital Euro

According to a report from the Financial Times, EU officials are increasingly interested in the benefits of launching a digital euro on a public blockchain. Such networks offer transparency, open access, and greater compatibility with established fintech and decentralized finance (DeFi) ecosystems. Unlike China’s private CBDC system, which restricts data visibility to authorized entities, the public blockchain approach allows universal participation and interoperability with existing blockchain infrastructure.

Sources say this strategy marks Europe’s attempt to differentiate its digital currency and address concerns about the impact of US dollar-pegged stablecoins. ECB Executive Board member Piero Cipollone has previously highlighted the risks posed by widespread stablecoin usage—particularly those backed by the dollar, which make up 98% of the stablecoin market—and called for urgent digital euro adoption to protect European financial autonomy.

Opportunities and Challenges of a Public Model

Experts note both advantages and drawbacks to launching a digital euro on public blockchains. On the positive side, public infrastructure could foster seamless integration with other blockchain-based systems being built across Europe. However, increased state engagement in open blockchain governance may raise concerns about government influence and oversight in the decentralized ecosystem.

ECB officials have yet to confirm which specific blockchain technology will be adopted, and the final decision is slated for late 2025. The digital euro project’s direction will profoundly influence how Europe competes with the US in global digital asset policy and stablecoin innovation.

Europe’s exploration of Ethereum and Solana for its digital euro signals a strategic pivot toward embracing transparency, interoperability, and innovation. As the ECB’s decision nears, stakeholders across Europe and beyond are watching closely, aware that the outcome could redefine cross-border payments and the future of monetary sovereignty on the continent.

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