The European Central Bank (ECB) had always dismissed public blockchains as too risky for government money. Now they’re considering building the digital euro on the same networks that power cryptocurrencies.
The ECB now seems to be exploring Ethereum and Solana for its flagship digital currency project. The Financial Times reported on Friday that officials seem to have abandoned years of private blockchain planning. Sources familiar with the discussions confirmed the strategy shift.
The move shatters central banking orthodoxy about digital currencies. Most experts expected the ECB to follow China’s controlled and private approach. Instead, European officials seem to be eying the open networks that governments traditionally feared.
Public blockchains operate as open networks accessible to everyone. Ethereum and Solana lead the consideration list. Private blockchains restrict access to authorized entities only.
One insider told the Financial Times that officials take public models “more seriously now”. The source requested anonymity due to sensitive negotiations. ECB has not finalized the technology framework for the digital euro project.
Strategic Positioning Against Global Competition
As per news reports, European officials worry about US stablecoin dominance in global markets. Dollar-pegged stablecoins control 98% of the current market. Piero Cipollone, a member of the Executive Board of the ECB, has highlighted these concerns in his statements multiple times.
Cipollone called for reducing European stablecoin usage through digital euro adoption. He warned that US dollar-backed assets pose sovereignty risks.
A private digital euro would mirror China’s centrally controlled digital yuan. A public version would follow the US approach used by companies like Circle. This choice reflects deeper philosophical differences about financial system control.
Network Options Under Review
Ethereum offers the largest smart contract ecosystem with broad institutional adoption. The network processes billions in daily transactions. Major financial institutions already use the Ethereum infrastructure.
Solana provides faster transaction speeds and lower costs than Ethereum. The network faced stability issues in previous years. Recent improvements address earlier technical problems.
Market observers will watch the decision closely. The choice could establish precedents for future central bank digital currencies worldwide. No major central bank has launched a Central Bank Digital Currency (CBDC) on public blockchain networks.
The decision could reshape global CBDC development approaches. Other central banks will monitor European progress closely, and the final choice may influence international digital currency strategies.
