EU Speeds Up Digital Euro Plans After U.S. Stablecoin Regulation
According to reports, the European Central Bank is weighing centralized, decentralized, and blockchain-based options for the digital euro, including Ethereum and Solana, in light of recent U.S. regulatory developments.
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Fact Check
The evidence confirms that the EU perceives the US's regulatory approach to dollar-backed stablecoins as a threat to its financial stability and monetary autonomy. Multiple sources state this is increasing pressure on Europe and directly causing the European Central Bank (ECB) to accelerate the development of the digital euro as a public countermeasure.
Summary
The European Central Bank is reassessing the technology framework for the digital euro after the passage of the U.S. stablecoin law. Officials are reviewing both centralized and decentralized approaches, along with distributed ledger technology. While earlier plans favored private blockchains for privacy reasons, public blockchains such as Ethereum and Solana are now under consideration. No final decision has been made regarding the platform for the digital euro.
Terms & Concepts
- Digital Euro: A central bank digital currency (CBDC) proposed by the European Central Bank to serve as a digital form of the euro.
- Distributed Ledger Technology (DLT): A decentralized database managed by multiple participants, enabling secure and transparent recording of transactions.
- Public Blockchain: A decentralized and transparent ledger, such as Ethereum or Solana, accessible to anyone without permission.