The European Union is exploring the use of public blockchain networks like Ethereum and Solana to support its upcoming digital euro, marking a notable departure from the traditionally favored private or permissioned CBDC models. If confirmed, this would position the EU as one of the first global jurisdictions to seriously weigh open blockchain architecture for sovereign digital currency.
According to a Financial Times report published Friday, the European Central Bank (ECB) is now actively assessing whether to build the digital euro on a public blockchain infrastructure, as opposed to a private one. The information was attributed to sources with direct knowledge of the matter.
If implemented, this pivot would represent a radical shift in central bank digital currency (CBDC) design, aligning the EU more closely with market-driven stablecoin initiatives in the United States and distancing it from state-controlled models like China's digital yuan, which operates on a closed and permissioned system.
A Public Blockchain CBDC: The Ethereum and Solana Option
At the core of this potential move is the ECB’s re-evaluation of public versus private blockchains for hosting the digital euro.
Public blockchains like Ethereum and Solana are decentralized, transparent, and globally accessible, making them widely used in the crypto industry for stablecoins, DeFi applications, and digital asset issuance. These features contrast sharply with private blockchains, where data visibility, consensus mechanisms, and access are restricted to select institutions.
One source familiar with the ECB’s internal discussions told the FT that public blockchain use is “definitely something they’re taking more seriously now.” Another emphasized that if the ECB opted for a closed design, the digital euro would more closely resemble China’s centralized e-CNY - a direction some European policymakers are now keen to avoid.
Strategic Shift: Moving Away from the China Model
The People’s Bank of China’s digital yuan operates through a centralized ledger, where the state retains control over issuance, distribution, and data access. This “surveillance coin” model has raised concerns about privacy, transparency, and competition in global financial markets.
By contrast, if the digital euro were deployed via Ethereum or Solana, it would resemble regulated stablecoin systems like those used by Circle (issuer of USDC) or Paxos (issuer of PayPal USD). These operate on transparent blockchains with verifiable on-chain reserves and smart contract automation, all of which could theoretically improve the ECB’s oversight while enhancing user confidence.
This shift comes amid growing European concern over U.S. dollar-dominated stablecoins, particularly as geopolitical tensions and digital finance adoption accelerate.
EU Policy Response to U.S. Stablecoin Dominance
ECB executive board member Piero Cipollone has publicly criticized the growing usage of dollar-backed stablecoins in Europe. In April 2025, he warned that 98% of the stablecoin market is currently tied to the U.S. dollar, posing long-term risks to European monetary sovereignty and local financial autonomy.
His remarks followed statements from other European regulators advocating for swift deployment of a digital euro that can serve as a viable, euro-denominated alternative to USDC and USDT.
“Without a European option, we risk outsourcing our digital monetary future,” Cipollone warned in April, citing the rapid growth of private stablecoins and the risk of Europe becoming overly reliant on foreign financial infrastructure.
The exploration of Ethereum and Solana may be viewed as a pragmatic response to the rising popularity of public blockchains. Both platforms are already used globally for stablecoins, NFTs, tokenized assets, and payments - all features that align with the ECB’s ambition to modernize the euro for the digital era.
Ethereum vs. Solana: A Technical Decision with Policy Implications
While no final decision has been made, Ethereum and Solana represent two very different architectural paradigms:
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Ethereum is the most battle-tested public blockchain with a strong focus on security, decentralization, and programmability. It supports major euro-pegged and USD-pegged stablecoins and benefits from high institutional trust, especially after its transition to proof-of-stake.
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Solana, on the other hand, is known for extremely low transaction fees and high throughput, making it attractive for consumer payments and high-volume settlement. However, it has faced occasional network instability and less regulatory adoption compared to Ethereum.
The ECB’s exploration of both chains suggests it is still evaluating trade-offs between speed, decentralization, and compliance controls.
Privacy, Governance, and Regulatory Oversight Still Key Concerns
Even if deployed on a public chain, the digital euro would not function like a typical permissionless asset. Observers expect the ECB to maintain control over issuance, monetary policy parameters, and compliance enforcement, possibly via custom smart contracts, identity gating, and whitelisted wallets.
Privacy remains a significant concern. A public ledger implies transparent transaction data, which could raise consumer protection and surveillance fears unless mitigated through zero-knowledge proofs or interoperable privacy layers - technologies that are increasingly being explored by both Ethereum developers and EU researchers.
The EU is also expected to maintain strict Know-Your-Customer (KYC) and Anti-Money Laundering (AML) rules, which may require integration with existing financial institutions and digital ID systems.
Timeline and the Digital Euro Pilot
The ECB has not publicly confirmed whether it will choose Ethereum, Solana, or another infrastructure. However, the institution has committed to a prototype and limited pilot of the digital euro by late 2025, with broader rollout discussions set for 2026 and beyond.
The current exploration phase is part of a broader consultation process launched by the European Commission and ECB in 2021, involving national central banks, EU legislators, and private sector partners.
So far, trials have focused on offline payment functionality, programmability, and cross-border use cases, with participating banks expressing support for hybrid models that combine public infrastructure with central oversight.
Industry and Market Implications
A decision by the EU to use Ethereum or Solana would mark a historic endorsement of public blockchain infrastructure by one of the world’s most powerful monetary blocs.
It could set a precedent for other jurisdictions, particularly in Latin America, Southeast Asia, and Africa, where public chains are already being used for tokenized treasuries, remittances, and mobile-first finance.
Moreover, the move could accelerate regulatory clarity for public chains in Europe, boosting on-chain euro liquidity, institutional DeFi participation, and permissioned stablecoin issuance within the bloc.
As of today, neither the ECB nor the European Commission has confirmed which chains are officially under consideration. Requests for comment from media outlets, including Cointelegraph, have gone unanswered.
Conclusion
The European Union’s reported exploration of Ethereum and Solana for the digital euro is a pivotal development in the evolution of central bank digital currencies.
While no final decisions have been made, the serious consideration of public blockchain infrastructure signals a potential break with China-style digital authoritarianism and a move toward open, interoperable, and innovation-friendly financial systems.
With stablecoins, tokenized assets, and decentralized finance reshaping global money markets, the EU’s next step could redefine how sovereign digital currencies coexist with the open internet of value.