EU Weighs Digital Euro on Ethereum and Solana

EU central banks and regulators are evaluating issuing a digital euro as tokens on public blockchains like Ethereum and Solana. The move is driven by U.S. stablecoin regulations and the rapid growth of dollar-backed tokens, aiming to protect the euro’s global role and reduce reliance on foreign payment providers. On Ethereum, the CBDC could leverage existing programmable payments and wallet infrastructure, while Solana offers lower fees and higher throughput. However, public-chain transparency conflicts with GDPR privacy and the ECB’s goal of cash-like anonymity, leading to proposals for privacy layers such as zero-knowledge proofs or hybrid models. Governance risks include validator control outside EU jurisdiction and potential network congestion. ECB officials estimate a two-to-three-year technical readiness timeline post-legislation, pending robust privacy engineering, legal frameworks, and pilot testing. Choosing a public blockchain would signal maturity for DeFi integration and secure the euro’s role in a tokenized economy.
Bullish
This news is bullish because the EU’s plan to issue a digital euro on public blockchains like Ethereum and Solana could drive increased on-chain activity and token demand. In the short term, announcements of potential integration may spur buying as traders anticipate higher network usage and transaction fees. In the long term, selecting Ethereum or Solana would signal institutional adoption, fostering developer activity, DeFi growth, and stable demand for ETH and SOL. Similar pilot programs in other regions have historically led to price appreciation for underlying tokens as utilities expand. However, regulatory and technical hurdles may moderate gains until clear pilot results emerge.