{"id":365757,"date":"2025-08-22T22:43:10","date_gmt":"2025-08-22T22:43:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/365757\/"},"modified":"2025-08-22T22:43:10","modified_gmt":"2025-08-22T22:43:10","slug":"eu-considers-public-blockchains-for-digital-euro-report-dl-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/365757\/","title":{"rendered":"EU considers public blockchains for digital euro: report \u2013 DL News"},"content":{"rendered":"<ul class=\"list-outside pl-8\">\n<li>EU officials are working on a digital euro.<\/li>\n<li>They had previously intended to release the digital currency on a private network.<\/li>\n<li>But the US\u2019 passage of the Genius Act and the growth of dollar-backed stablecoins has caused them to rethink those plans.<\/li>\n<\/ul>\n<p class=\"puppeteer-article-text-type-element\">Alarmed by the growth of dollar-pegged stablecoins after the US\u2019 passage of the Genius Act, European Union officials are considering launching a digital euro on a public blockchain such as Ethereum or Solana, the Financial Times <a href=\"https:\/\/www.ft.com\/content\/8ad60169-d1e5-4d2c-b928-d53d668f0ec6\" rel=\" nofollow noopener\" target=\"_blank\">reported<\/a> on Friday. <\/p>\n<p class=\"puppeteer-article-text-type-element\">In a statement, the European Central Bank told the paper it was considering \u201cdifferent technologies \u2014 both centralised and decentralised \u2014 in the development of the digital euro, including distributed ledger technologies.\u201d <\/p>\n<p class=\"puppeteer-article-text-type-element\">Previously, the EU\u2019s planned central bank digital currency, or <a href=\"https:\/\/www.dlnews.com\/articles\/regulation\/cbdc-ban-clears-house-trump-closer-crypto-campaign-pledges\/\" rel=\"noopener\" target=\"_blank\">CBDC<\/a>, was expected to be launched on a private network due to official\u2019s concern that tokens issued on public blockchains could compromise users\u2019 <a href=\"http:\/\/www.dlnews.com\/articles\/defi\/storm-prosecutors-slam-privacy-defence-in-closing-arguments\/\" rel=\"noopener\" target=\"_blank\">privacy<\/a>. <\/p>\n<p class=\"puppeteer-article-text-type-element\">According to the Financial Times, however, conversations within the EU changed after the US <a href=\"https:\/\/www.dlnews.com\/articles\/regulation\/trump-signs-genius-act-as-banks-eye-stablecoin-market\/\" rel=\"noopener\" target=\"_blank\">passed the Genius Act<\/a> in July, a landmark federal law that makes it easier for major corporations to issue their own stablecoins. <\/p>\n<p class=\"puppeteer-article-text-type-element\">The law\u2019s proponents argued the Genius Act would be a boon for stablecoins and, in turn, US dollar dominance. <\/p>\n<p class=\"puppeteer-article-text-type-element\">That sentiment was <a href=\"https:\/\/www.dlnews.com\/articles\/regulation\/trump-crypto-policies-a-threat-to-europe-says-official\/\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"https:\/\/www.dlnews.com\/articles\/regulation\/trump-crypto-policies-a-threat-to-europe-says-official\/\">echoed<\/a> by Pierre Gramegna, the managing director of European Stability Mechanism, a European Union intergovernmental organisation. <\/p>\n<p class=\"puppeteer-article-text-type-element\">\u201cAnd, if this were to be successful, it could affect the euro area\u2019s monetary sovereignty and financial stability,\u201d Gramegna said in March, referring to the success of dollar-backed stablecoins. <\/p>\n<p class=\"puppeteer-article-text-type-element\">To tackle this threat, he urged the European Central Bank to make \u201cthe digital euro a reality to safeguard Europe\u2019s strategic autonomy.\u201d<\/p>\n<p class=\"puppeteer-article-text-type-element\">One EU official, quoted anonymously, told the FT the passage of the Genius Act \u201crattled a lot of people\u201d who now want to accelerate the development of a digital euro.<\/p>\n<p class=\"puppeteer-article-text-type-element\">ECB leaders and EU officials say a digital euro could bolster Europe\u2019s financial autonomy by creating a home-grown payment system to rival American payment giants like Visa.<\/p>\n<p class=\"puppeteer-article-text-type-element\">While EU officials worry about the privacy implications of launching a token on a public blockchain, the digital euro has nevertheless been fraught with <a href=\"https:\/\/www.dlnews.com\/articles\/regulation\/ecb-head-christine-lagarde-battles-digital-euro-conspiracies\/\" rel=\"noopener\" target=\"_blank\">controversy and conspiracy theories<\/a> since the ECB launched its investigation in 2021.<\/p>\n<p class=\"puppeteer-article-text-type-element\">Many consumers want to avoid a Big Brother scenario where the central bank would be able to digitally track their spending with CBDCs.<\/p>\n<p class=\"puppeteer-article-text-type-element\">To assuage that concern, the ECB said it would not have access to personal data. That would remain with commercial banks, which would need to host the digital euro.<\/p>\n<p class=\"puppeteer-article-text-type-element\">Citing the potential for government surveillance, Republican lawmakers in the US have sought to preempt the development of any CBDC. <\/p>\n<p class=\"puppeteer-article-text-type-element\">The week, the House of Representatives passed the annual National Defense Authorization Act, which includes a<a href=\"https:\/\/rules.house.gov\/sites\/evo-subsites\/rules.house.gov\/files\/documents\/rcp_h3838_xml_3.pdf\" rel=\" nofollow noopener\" target=\"_blank\"> provision<\/a> to block the Federal Reserve from issuing a digital dollar.<\/p>\n<p class=\"puppeteer-article-text-type-element\">Aleks Gilbert is DL News\u2019 New York-based DeFi reporter. You can reach him at <a href=\"https:\/\/www.dlnews.com\/articles\/regulation\/eu-considers-public-blockchains-for-digital-euro-says-ft\/mailto:aleks@dlnews.com\" rel=\" nofollow noopener\" title=\"https:\/\/www.dlnews.com\/articles\/regulation\/eu-considers-public-blockchains-for-digital-euro-says-ft\/mailto:aleks@dlnews.com\" target=\"_blank\">aleks@dlnews.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"EU officials are working on a digital euro. They had previously intended to release the digital currency on&hellip;\n","protected":false},"author":2,"featured_media":365758,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[2000,299,5187,14441,1699,16137],"class_list":{"0":"post-365757","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-eu","9":"tag-europe","10":"tag-european","11":"tag-european-central-bank","12":"tag-european-union","13":"tag-stablecoin"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115074839594341537","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/365757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=365757"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/365757\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/365758"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=365757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=365757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=365757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}