The European Union is weighing a surprising move regarding its long-discussed digital euro. Officials are now exploring whether to run it on public blockchains such as Ethereum (ETH-USD) or Solana (SOL-USD). That means shifting away from private, closed systems and opening the door to networks that anyone can access.
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This is a big change in tone. Until now, most central banks, including China, have favored private blockchains that restrict access to authorized players. If Europe breaks from that approach, the digital euro could resemble U.S. stablecoins rather than China’s tightly controlled digital yuan.
Europe Responds to U.S. Stablecoins
The pressure is not only about technology. U.S. dollar-backed stablecoins now dominate with more than 98 percent of the market. European policymakers worry that such heavy reliance on American products could erode Europe’s financial independence. In April, ECB board member Piero Cipollone argued that cutting down the use of stablecoins might require a digital euro that people can trust and adopt.
Choosing Ethereum or Solana would be a strategic signal that Europe intends to compete directly with U.S. private sector innovation instead of playing catch-up.
The Trade-Offs of Going Public
Public blockchains bring clear benefits. A digital euro built on Ethereum or Solana could connect instantly with existing crypto infrastructure such as DeFi platforms, wallets, and global payment rails. This would make adoption smoother and reduce the friction that usually slows central bank digital currencies.
The risks are equally clear. A public blockchain could give governments a stronger role in how these networks are governed. Juan Ignacio Ibañez of MiCA Crypto Alliance put it bluntly when he said the upside is better integration, while the downside is a stronger state interest in influencing blockchain governance.
The ECB Has Yet to Decide
For now, nothing is final. An ECB spokesperson declined to confirm whether Ethereum or Solana are officially under review and instead pointed to the central bank’s FAQ page. The ECB maintains that no model has been chosen. The Governing Council is expected to decide by the end of 2025 whether a digital euro will even be issued.
That means the project is still in the exploratory phase. What has changed is the nature of the debate. Europe is no longer asking if it should launch a digital euro. The question is what kind of system will power it, private and controlled or public and interoperable.
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