The European Union is reportedly speeding up its efforts to launch a digital euro, in part by considering the use of a public blockchain rather than a private one.<\/p>\n
The shift was prompted by the passage of a stablecoin law<\/a> in the United States, which has left EU officials concerned that dollar-backed stablecoins could become even more dominant than they already are in cross-border payments, the Financial Times (FT) reported<\/a> Friday (Aug. 22), citing unnamed sources.<\/p>\n The European Central Bank<\/a> has been doing work in preparation for a potential digital euro<\/a> for years, according to the report.<\/p>\n Asked by the FT about the report of an acceleration of those efforts, the ECB said, per the report, that it is considering different technologies for a digital euro and that no decision has been made.<\/p>\n It was reported in March that European Stability Mechanism<\/a> Managing Director Pierre Gramegna<\/a> told reporters that Europe\u2019s monetary autonomy and financial stability could be threatened by the President Donald Trump administration\u2019s interest in cryptocurrencies and dollar-denominated stablecoins<\/a>.<\/p>\n Gramegna said that considering the change in the U.S. perception of digital currencies, the ESM believes that \u201cthis digital euro is today more necessary than ever.\u201d<\/p>\n In February, it was reported that the ECB hoped America\u2019s new pro-cryptocurrency attitude could help bring about a digital euro<\/a>.<\/p>\n Piero Cipollone<\/a>, a member of the ECB board, said that the ECB was already considering the idea of a digital currency to give Europe an electronic payment method that doesn\u2019t depend on U.S. companies.<\/p>\n Cipollone added that Trump\u2019s support for globally available stablecoins tied to the dollar added yet another U.S.-made payment tool to that list and gave more urgency to the digital euro efforts.<\/p>\n \u201cThe political world is becoming more alert to this,\u201d Cipollone said. \u201cAnd it\u2019s possible that we will see an acceleration in the process.\u201d<\/p>\n Think tank Atlantic Council<\/a> said in September that 134 countries accounting for 98% of the world\u2019s economy were exploring central bank digital currencies<\/a>.<\/p>\n