EU Considering Public Blockchain for Digital Euro: FT

European officials are weighing whether to deploy the forthcoming digital euro on a public blockchain like Ethereum or Solana, marking a sharp departure from earlier expectations of a closed system, the Financial Times reports.

What’s the Scoop?

• Policy Rethink: EU insiders told FT that the GENIUS Act, which established a federal stablecoin framework, has pushed Brussels to speed up its digital euro timeline and explore public chain deployments.
• Public vs Private: A blockchain-based euro could circulate globally and compete directly with dollar-backed stablecoins, but may raise privacy concerns since transactions are visible onchain.
• Strategic Concerns: Officials fear the U.S. law will accelerate the dominance of dollar-pegged stablecoins, putting pressure on the euro’s role in cross-border payments.
• ECB Position: The central bank confirmed it is evaluating both centralized and decentralized technologies, without committing to a final design.

Bankless Take:

It is time for the legacy financial system to evolve. Stablecoins are a clear adoption nexus for blockchain technologies, and although worries about central bank digital currencies persist, the launch of an ECB digital euro on public blockchains would be undeniably historic.