The European Union is reportedly exploring main public blockchain networks like Ethereum and Solana for its digital euro design.
The European Central Financial institution (ECB) is contemplating working a digital euro on a public blockchain like Ethereum somewhat than a non-public one, the Monetary Occasions reported on Friday, citing individuals conversant in the matter.
In contrast to a non-public blockchain, the place information is strictly restricted to licensed entities, public blockchains like Ethereum or Solana are open to everybody.
If confirmed, the EU’s exploration of public blockchains would symbolize a major milestone within the digital euro’s growth, on condition that the ECB has not but finalized the expertise framework for the mission.
Public mannequin in comparison with US stablecoins
The usage of a public blockchain is “undoubtedly one thing that [EU officials are] taking extra severely now,” one of many individuals concerned within the digital euro discussions advised the FT.
One other particular person stated a digital euro in a non-public kind would look “far more like what the Chinese language central financial institution is doing than what non-public corporations within the US are doing.”
The particular person particularly referred to China’s central financial institution digital foreign money (CBDC), which is deployed privately, against public-run stablecoins developed by corporations like Circle.
Associated: China weighs yuan-backed stablecoins in main coverage shift: Reuters
Europe has been more and more involved concerning the US stablecoin push promoted by the Trump administration and its implications for the autonomy of the European monetary system.
In April, ECB govt board member Piero Cipollone known as for reducing stablecoin utilization in Europe by introducing a digital euro, citing adoption dangers of the US dollar-pegged stablecoins, which dominate the stablecoin market at 98%.
The ECB has but to publicly verify whether or not it’s contemplating Ethereum or Solana. Cointelegraph contacted the central financial institution for remark however didn’t obtain a response by publication.
It is a creating story, and additional info might be added because it turns into obtainable.
