How would the ECB run a digital euro on Ethereum or Solana?

ECB officials are reportedly evaluating public chains to host settlement layers or tokenized central-bank liabilities. Using Ethereum or Solana could allow the ECB to implement smart-contract wrappers for compliance rules, offline distribution channels, and programmable payments.

Supporters argue a public approach would improve auditability and third-party integration. Critics note privacy and scalability trade-offs; any final design would likely combine central-bank issuance with strict on-chain governance and regulatory controls.

Why consider public blockchains instead of private CBDC models?

Public blockchains offer open verification, broad access, and a large developer ecosystem. EU policymakers see potential to limit dependence on foreign stablecoins and private settlement rails while keeping monetary sovereignty.

Officials referenced concerns about US stablecoin expansion and noted that private CBDC deployments, like China’s, differ materially from public options. The stablecoin market concentration—dominated by US-dollar pegged tokens—was cited as a motivation to explore alternative architectures.

What trade-offs would a public-model digital euro face?

Key trade-offs include privacy versus transparency, throughput versus decentralization, and regulatory enforcement versus permissionless access. Any EU deployment would likely use layered solutions or permissioned overlays to address these trade-offs while preserving central-bank control over issuance and monetary policy.