Ethereum News Today: Europe Considers Public Blockchain for Digital Euro, Raising Governance Questions

The European Union is reportedly exploring the use of public blockchain networks such as Ethereum and Solana in the development of its digital euro initiative. According to recent reports, the European Central Bank (ECB) is considering deploying the digital euro on a public blockchain rather than a private one, a potential shift that could mark a significant milestone in the project’s evolution. Public blockchains, unlike their private counterparts, are open and accessible to anyone, enabling greater interoperability with existing decentralized infrastructure such as DeFi platforms and global payment systems.

This development signals a departure from the prevailing trend among central banks, including China’s, which have traditionally opted for private blockchain solutions. The shift toward a public model has drawn comparisons to U.S.-based stablecoins like those issued by Circle, which dominate over 98% of the stablecoin market. European policymakers have expressed growing concerns about this dominance and its implications for the continent’s financial sovereignty. In April, ECB Executive Board member Piero Cipollone called for reducing reliance on U.S. stablecoins and proposed a digital euro as a potential solution.

Public blockchain networks offer clear advantages, such as enhanced interoperability and ease of integration with global crypto infrastructure. However, they also introduce new governance challenges. Juan Ignacio Ibañez, general secretary of the MiCA Crypto Alliance, highlighted that while a public-blockchain-based digital euro could connect more seamlessly with the broader ecosystem, it may also lead to increased state influence over blockchain governance. This trade-off underscores the complexity of the decision-making process as the ECB weighs the benefits and risks.

The ECB has not yet finalized its approach and has emphasized that no model has been selected. An official spokesperson declined to confirm whether Ethereum or Solana are currently under formal consideration, instead directing attention to the central bank’s digital euro FAQ page, which states that the decision remains pending. The ECB Governing Council is expected to make a final decision by the end of 2025 on whether to proceed with the issuance of a digital euro, according to official statements.

The exploration of public blockchains represents a notable evolution in the ECB’s strategy. While the project is still in the early stages, the focus has shifted from whether a digital euro will be issued to how it will be structured. The potential adoption of a public blockchain model could redefine the nature of Europe’s digital currency and its position in the global financial landscape. As the ECB continues to evaluate its options, the implications for both the crypto market and broader financial systems remain under close observation.

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