EU speeds up digital euro launch to counter growing stablecoin market dominance.

ECB considers public blockchains like Ethereum for wider digital euro adoption.

European banks resist digital euro, fearing threat to traditional banking models.

The European Central Bank (ECB) has been contemplating a digital euro for years. The European Union is accelerating plans to issue a digital euro, prompted by the rising competition in the global environment and the escalating use of stablecoins. The shift is in response to the emergence of stablecoins and the new regulatory framework introduced by the GENIUS Act in the U.S.

Most of the global stablecoin market of $288 billion is occupied by stablecoins pegged to the US dollar. U.S. regulations pose a threat of strengthening the dollar presence in this market, as feared by the EU officials. This, in their opinion, may undermine the power of the euro across the globe. The EU is now concerned that the introduction of the project is the only option to ensure the relevance of the euro.

ECB’s Vision for a Digital Euro in the Digital Age

The European Central Bank (ECB) has been contemplating a digital euro for years. The project would be an electronic version of the currency with the backing of a central bank and which could be used to transact Eurozone payments. With the increase in the world use of digital payment systems and the reduced use of cash, the ECB has been keen on staying abreast of the developments.

Piero Cipollone, an executive board member of the ECB, recently admitted that cash alone cannot do the job in the digital age. In May, he stated that cash will not be eliminated, but it should no longer be the only payment method. The project will make sure that the public money remains accessible and boosts the physical cash. It would also help maintain the euro’s competitiveness in a world that is moving towards the digital currency.

Also Read: ECB’s Philip Lane: Digital Euro Vital for Europe’s Financial Future

In an effort to accelerate the development of the project, the ECB has now been looking at public blockchains. The original plans implied using a private blockchain in which the ECB would verify all payments and wallets. However, today the ECB is thinking about employing famous public blockchains such as Ethereum and Solana. This, officials believe, may enhance circulation as well as the adoption of the digital euro across the globe.

European Banks Resist Digital Euro Amid Concerns

The notion is being resisted by several banks in Europe. The fear by banks is that the digital euro will put at jeopardy their existing business framework. Their concern is that the digital currency is likely to diminish interest in conventional banking services.

Irrespective of this opposition, the ECB is proceeding with its plans. It is not yet known when the digital euro will be released. Originally, the target was initially put by the ECB to October 2025. However, things are changing quickly, and there are signs that the deployment can be accelerated. The decision will be approved on a final basis depending on the approval of laws and regulatory frameworks.

The interest of the EU in having a digital euro has emerged amidst challenges of competition by other major powers in the world. The United States is rushing to cryptocurrency regulation. China too is planning its own digital yuan The EU needs to move with the world in terms of digital currencies as these nations gain leadership in the move to digital currencies.

The ECB would have to address the technical and regulatory issues for the project to work. It should also address the issues of European banks, which view of digital euro as a rival. Nevertheless, the ECB continues to adhere to the project, which, in their opinion, is the future of the financial system of the eurozone.

Also Read: ECB Launches Digital Euro Trial Period With 70 Firms Across Europe: Launch Decision in Late 2025

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Filed under: Bitcoin - @ August 23, 2025 8:00 am