EU Eyes Public Blockchain for Digital Euro Amid U.S. Stablecoin Push

The European Union is considering a bold move—launching the upcoming digital euro on public blockchains such as Ethereum or Solana, reports Finextra. This potential shift marks a significant departure from earlier plans for a private, centrally controlled digital currency.

According to the Financial Times, the urgency to accelerate the digital euro project has grown following the U.S. Congress’ passage of the Genius Act, which provides a regulatory framework for stablecoins. European policymakers fear the Act could pave the way for dollar-backed stablecoins to dominate global cross-border payments, leaving the euro at a competitive disadvantage.

Until recently, the European Central Bank (ECB) leaned toward a closed, centralized design, citing security and privacy concerns. Yet, advocates argue that leveraging open blockchain ecosystems would allow the euro to remain competitive internationally, offering interoperability and visibility in a global financial system increasingly shaped by digital assets.

The debate also underscores Europe’s geopolitical anxieties. Overreliance on American payment giants such as Visa and Mastercard has long been a concern. Now, with Washington taking the lead in defining the rules for stablecoins, Brussels faces pressure to act quickly or risk falling behind in the race for monetary relevance in the digital age.

The decision—whether to embrace public blockchains or maintain strict central control—will not only determine the digital euro’s technological foundation but also signal Europe’s broader stance on innovation, sovereignty, and competition in the new financial order.