Public Blockchains Enter the EU’s Digital Euro Debate
The European Union (EU) is reportedly exploring the possibility of running its digital euro on major public blockchains such as Ethereum and Solana, according to a report from the Financial Times.
This marks a major shift in approach for the European Central Bank (ECB), which has so far kept its digital euro discussions largely tied to private blockchain models. Unlike private blockchains, where only authorized entities can view or validate data, public blockchains are open and decentralized, allowing anyone to participate.
If adopted, the move would represent a historic milestone in Europe’s CBDC strategy, setting it apart from other models like China’s digital yuan, which runs on a closed, state-controlled system.
Public vs. Private: Two Competing Visions
Sources close to the digital euro project said the ECB is “taking public blockchains more seriously now.”
One insider noted:
“A private digital euro would look much more like what the Chinese central bank is doing than what private companies in the US are doing.”
The contrast highlights Europe’s delicate balancing act. A public model would align the EU more closely with the US stablecoin ecosystem, led by issuers like Circle’s USDC, while a private model would maintain tighter state control but risk falling behind innovation.
Europe Responds to the US Stablecoin Push
European officials are growing concerned about the US stablecoin dominance. Today, over 98% of stablecoins are pegged to the US dollar, creating potential risks for European monetary sovereignty.
In April, ECB board member Piero Cipollone argued for reducing stablecoin use in Europe by introducing a digital euro as a domestic alternative.
The ECB has not confirmed which blockchain networks it is testing. Its FAQ page simply notes that no final decision has been made on the CBDC model.
The Potential Pros and Cons
Experts say adopting a public blockchain could bring both benefits and risks.
- ✅ Pros:
- Easier interoperability with existing blockchain infrastructure
- Stronger integration with DeFi and tokenized finance
- Increased transparency and auditability
- ❌ Cons:
- Greater state influence over blockchain governance
- Potential conflicts with decentralization principles
- New regulatory and technical challenges
Juan Ignacio Ibañez, general secretary of the MiCA Crypto Alliance, summed it up:
“A public-blockchain-based digital euro could interoperate better with today’s blockchain infrastructure, but it also risks a stronger state influence over blockchain governance.”
Timeline for the Digital Euro
The ECB Governing Council has set 2025 as the decision year for whether to formally issue a digital euro.
Until then, the debate over Ethereum, Solana, or private alternatives will continue to shape the EU’s approach to the future of digital money.
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