European officials have accelerated plans to create a digital euro.
GetBlock Magazine - Main:
- EU accelerates plans for digital euro.
- Ethereum or Solana are being considered instead of private networks.
- The EU fears that without quick action, the US regulatory framework could accelerate global demand for dollar-backed tokens.
The Financial Times reports that the reason is Washington's adoption of the ambitious Guidance and National Innovation for US Stablecoins (GENIUS) Act, which many in Brussels see as a threat to the competitiveness of the EU single currency.
Officials are debating whether the digital euro should run on a public blockchain, such as Ethereum or Solana. Previously, a closed ledger controlled by the European Central Bank was considered.
US’s Swift Action on Cryptocurrency Regulation Forces EU to Accelerate Plans
The GENIUS Act, signed into law by US President Donald Trump in July, sets the first comprehensive rules for the stablecoin market. Under the law, issuers of dollar-backed tokens must hold liquid assets, meet licensing obligations, and adhere to strict reporting standards. In Europe, Washington’s swift action has raised concerns among policymakers who had previously been more cautious about pushing ahead with their project.
The Debate Over Public Blockchain vs. Private Ledger for Digital Euro
Proponents argue that using an open blockchain could help the euro become more widely used, while critics warn that public networks subject transactions to scrutiny and raise privacy concerns.
The EU fears that without swift action, the US regulatory framework could accelerate global demand for dollar-backed tokens, potentially eroding the euro’s role in cross-border payments.