EU Pushes Digital Euro Forward, Eyes Ethereum and Solana Integration

In the wake of the United States passing the GENIUS Act - a landmark law providing comprehensive regulatory clarity for dollar-based stablecoins—the European Union is now shifting into high gear to finalize its own digital currency project. Previously envisioned as a centrally controlled initiative, the digital euro is now being reimagined to potentially run on public blockchain infrastructure, with Ethereum and Solana emerging as serious contenders.

U.S. Law Sparks Urgency in Europe

The GENIUS Act, which effectively legitimizes the $288 billion stablecoin sector dominated by USDC and USDT, has shaken European regulators into action. According to The Financial Times, the legislation sent shockwaves through EU institutions, prompting a reassessment of the EU's digital currency strategy.

"Let’s speed up, let’s push," is now the rallying cry among European Central Bank (ECB) officials, one source told FT, describing how the swift U.S. move has "rattled a lot of people."

Until recently, the digital euro was planned as a private, ECB-controlled system, akin to China’s central bank digital currency (CBDC). However, with the U.S. taking concrete steps to entrench the dollar as a crypto-native asset, Europe is no longer convinced that a closed, centralized platform will suffice.

Ethereum and Solana Now Under Consideration

In what would have been unthinkable just a year ago, the ECB confirmed it is evaluating decentralized options, specifically naming Ethereum and Solana as possible platforms for the digital euro. The bank told FT it is reviewing “both centralized and decentralized systems,” including distributed ledger technologies (DLTs).

This shift represents a significant change in mindset. Public chains were long considered unsuitable for central bank projects due to privacy concerns—after all, blockchain transactions are transparent, with wallet and transfer data accessible to anyone. But that concern is now taking a backseat to global relevance and reach.

If the EU hopes to compete internationally, leveraging well-established public blockchains may be essential. “Definitely something that [EU officials are] taking more seriously,” one official said of the possibility.

Battle Over Currency Sovereignty Heats Up

The U.S. isn’t just ahead on regulation—its financial giants are getting in on the game. Banks like JPMorgan and Citi are developing their own tokens, further entrenching the dollar’s dominance in digital finance.

At present, the largest euro-pegged stablecoin—Circle’s EURC—has a relatively tiny market cap of just $225 million, a fraction of the size of U.S. dollar-based tokens. Without urgent innovation, European officials fear that the euro could be sidelined in the growing crypto economy.

ECB executive board member Piero Cipollone has voiced concerns, warning in April that the U.S. surge in stablecoins could lead to “euro deposits being moved to the United States” and result in “excessive reliance on foreign payment solutions.” He added, “Europe cannot afford to rely excessively on foreign payment solutions.”

As the digital euro project gains momentum, the conversation has shifted. It’s no longer about whether the EU will launch a digital currency—it’s about how it will do so, and whether it can keep up with the fast-evolving crypto landscape shaped by the United States.

Source:

“EU fast-tracks digital euro plans, eyes Ethereum or Solana for rollout”, cryptopolitan.com, August 22, 2025