- EU evaluates Ethereum, Solana for digital euro rollout.
- Focus on reducing USD stablecoin dependence.
- Potential surge in blockchain adoption and market activity.
The European Central Bank is considering deploying the digital euro on blockchains like Ethereum or Solana, prompted by US legislation regulating dollar stablecoins, according to a Financial Times report.
The ECB aims to enhance euro resilience and reduce foreign payment dependency, impacting cryptocurrency market dynamics and possibly increasing institutional focus on Ethereum and Solana networks.
The European Central Bank is officially considering Ethereum and Solana for deploying the digital euro. This decision was influenced by recent US legislation concerning dollar stablecoins, although no final plans have been established yet.
Key figures involved include ECB Executive Board Member Piero Cipollone. The ECB confirmed explorations into both centralized and decentralized solutions, aiming to boost euro resilience in the face of foreign digital currency advancements.
“The digital euro must be developed as a means to maintain euro resilience while decreasing dependence on foreign payment systems” – Piero Cipollone, Executive Board Member, European Central Bank (ECB).
The move could lead to increased attention and demand for ETH and SOL within institutional circles. Such actions emphasize the EU’s attempt to counterbalance the dominance of USD-backed stablecoins like USDT and USDC.
Insights into the new EU policies reveal significant emphasis on privacy, compliance, and the balance between open access and transaction secrecy, occasionally contrasting with the US regulatory changes affecting stablecoins.
This shift in focus might reshape the Eurozone’s crypto market, aligning with geopolitical and technological interests. Potential increases in total value locked (TVL) and liquidity on Ethereum and Solana are anticipated if they are chosen for implementation.
Evidence suggests that implementing the digital euro on public blockchains could lead to significant changes across the crypto ecosystem, particularly affecting euro-backed stablecoins and DeFi protocols operating on these chains.
