(25 August 2025 – Europe) The European Union is accelerating plans for a digital euro following the United States’ approval of stablecoin legislation, according to the Financial Times.
Stablecoins are typically pegged to traditional currencies and backed by assets such as government bonds, with the US dollar currently dominating the market. The EU is keen to prevent the dollar from gaining further ground.
Discussions are now focused on issuing a digital euro via a public blockchain, such as Solana or Ethereum, rather than a private network previously considered due to privacy concerns. Stablecoins already operate on these public blockchains.
A digital euro could help speed up transactions across Europe, boost the currency’s role in global trade, and provide a counterweight to the dollar’s dominance outside the eurozone.