The European Union is moving forward with plans for a digital euro, considering public blockchains like Ethereum and Solana for issuance. The European Central Bank is preparing for the launch, with a timeline set until October 2025. The decision is driven by strategic autonomy and aims to reduce dependence on non-EU payment rails. EU regulations are in place to supervise euro-denominated tokens and service providers. The exploration of public blockchains aligns with the ECB’s technology-neutral stance. The use of public blockchains in institutional finance is not new in Europe. The policy decision to explore Ethereum and Solana does not indicate a final choice. The timeline for a political deal on the digital euro is expected no earlier than 2026. Testing with market participants continues under an innovation platform framework. The assessment of public chains is ongoing, with the legislative pathway being the key factor in the decision-making process.
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