EU Considers Ethereum or Solana for Digital Euro Project

According to a Friday report by the Financial Times, the European Union is exploring the possibility of launching the digital euro project on public blockchains like Ethereum or Solana instead of using a private blockchain.

While issuing a digital euro on a public blockchain could enhance accessibility, concerns about privacy-related issues remain.

Jolting EU into Action

The EU has been spurred into action by the swift passage of the GENIUS Act, a comprehensive stablecoin legislation, in the US.

Fearing falling behind in the stablecoin race against the US, EU officials are expediting the development of the digital euro to maintain the euro’s dominance within the EU.

Despite the existence of euro-backed stablecoins, their market cap pales in comparison to dollar-backed stablecoins.

Global Stablecoin Race

Recent reports suggest that even China, traditionally anti-crypto, is considering approving yuan-backed stablecoins to counter the dominance of dollar-backed stablecoins.

Japan, the world’s fifth-largest economy, has also given the green light for the first dollar-pegged stablecoin.