According to the Financial Times, the European Union (EU) has begun work on the long-awaited digital euro. The recent passage of the GENIUS Act, a stablecoin law in the US, was one of the key factors spurring the EU into action. The EU, the world's largest trading bloc, has accelerated its work on the digital euro to avoid being left behind in the stablecoin race. At this point, the European Central Bank (ECB) is considering the possibility of the Digital Euro's infrastructure being run on a public network rather than a private blockchain. Accordingly, the EU may opt for public networks such as Ethereum (ETH) or Solana (SOL) rather than a private blockchain for the digital euro. According to sources, the use of public blockchains such as Etheruem and Solana has now become an option being seriously considered by EU authorities. While there are very few euro-backed stablecoins on the market, their market capitalization is quite small compared to dollar-backed stablecoins. This increases the importance of the digital euro for the EU. The US's rapid move into dollar-backed stablecoins is fueling concerns about Europe falling behind in the digital currency race. The US's move toward stablecoins has also spurred action from other global trading giants. China is preparing to legalize yuan-backed stablecoins after a 12-year ban, while Japan recently approved its first dollar-backed stablecoin. *This is not investment advice. Continue Reading: Following the US, the European Union Pushes the Button for Stablecoins! Ethereum (ETH) and This Altcoin Are Being Considered for the Digital Euro!
