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What a Digital Euro on Ethereum or Solana Means for Europe’s Monetary Sovereignty

by admin August 27, 2025



In brief

  • The U.S.’s recently passed stablecoin law has heightened pressure on Europe to accelerate digital euro plans.
  • Deploying on Ethereum or Solana could expand global use of the currency, Decrypt was told.
  • Yet privacy, governance and banking stability remain key concerns for officials.

European officials are considering whether to issue the digital euro on public blockchains like Ethereum or Solana, in a departure from earlier plans for a closed, centrally run system.

The debate has intensified in recent weeks ever since the U.S. passed its first stablecoin law in July, giving regulated dollar-backed tokens a head start in global finance.

Ram Kumar, a core contributor at blockchain infrastructure firm OpenLedger, told Decrypt that deploying the euro on a public chain would dramatically expand its reach.



“It would open the euro to the wider crypto economy instantly,” Kumar said. “It could plug into DeFi, global wallets, and cross-border payments without needing to build that infrastructure from scratch.”

Ethereum could offer “programmability and access to a rich developer ecosystem,” Kumar said, while Solana provides “low fees and high throughput that can handle consumer-scale payments.” 

Both, he said, would make the euro more visible beyond Europe in ways a private ledger cannot. 

Kumar added that the U.S.’s stablecoin legislation, dubbed the GENIUS Act, is forcing Europe to move faster. 

“If the dollar gets a head start in digital payments, it risks overshadowing the euro in global finance,” he said.

The Financial Times first reported that officials were considering the use of public blockchains late last week.

Mounting pressure

Still, risks over such a model remain. 

Privacy is the foremost concern, with public blockchains clashing with the EU’s GDPR framework, which includes rights such as data erasure, and the European Central Bank’s stated goal of preserving cash-like anonymity in digital payments.

Technical and governance issues also persist, including Ethereum’s scalability limits, Solana’s reliability record, and the reality that upgrades and validators would remain outside direct state control. 

Policymakers have warned that a widely accessible euro token could pull deposits from banks if not carefully designed.

In April, ECB executive board member Piero Cipollone warned that U.S. stablecoins could move deposits from European banks and strengthen the dollar’s global role.

Measures taken by the new U.S. administration under Trump “to promote crypto-assets and U.S. dollar-backed stablecoins” are raising concerns for “Europe’s financial stability and strategic autonomy,” Cipollone wrote at the time.

An ECB spokesperson told Decrypt its position remains unchanged, pointing to Cipollone’s confirmation in July that a digital euro could be technically ready “in the next two-and-a-half to three years after the legislation is in place.”

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August 27, 2025 0 comments
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European Technology Sovereignty Watch
Gaming Gear

Europe’s silent tech crisis deepens as entire industries run on American systems while sovereignty slogans collapse under Washington’s shifting political winds and corporate dominance

by admin August 25, 2025



  • European firms are deeply locked into foreign office suites and systems
  • American platforms manage the communication backbones of Europe’s largest corporations
  • Reliance on external providers exposes utilities and healthcare to foreign oversight

For years, European governments and corporations leaned heavily on American technology offerings instead of nurturing local alternatives.

That choice now carries visible consequences, as sanctions and shifting trade rules brought in by the Trump administration drastically reshape the balance of power.

A recent analysis of business email domains across Europe by Proton shows a striking majority of publicly listed firms rely on American providers such as Google and Microsoft.


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Data reveals the depth of reliance

Behind the rhetoric of digital sovereignty, the reality is that much of Europe’s digital infrastructure rests on technology stacks that entities outside its borders control. This is not just about convenience software but also about essential systems that underpin finance, healthcare, and utilities.

Email may appear mundane, but it often serves as the gateway to office software, online collaboration platforms, and cloud-based storage.

When a company commits to a provider for email, it usually adopts the full suite, embedding foreign technology deep into its operations.

This trend is not limited to smaller economies but also includes the continent’s largest players, where dependence cuts across industries from energy and telecommunications to pharmaceuticals.

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In countries like Iceland, Norway, Finland, and Sweden, over 90% of publicly listed companies rely on American services for email and related infrastructure.

However, the shocker is probably Ireland, which is at loggerheads with the US on several policies, but 93% of its businesses depend on American tech.

The UK, although mostly an ally of the US, has an alarming 88% of businesses relying on US tech, while other European heavyweights like Spain, Portugal, and Switzerland recorded 74%, 72%, and 68% of businesses relying on US tech, respectively.

Even France, which often champions its own autonomy, sees two out of three (66%) companies tied to US providers.

Eastern European countries like Bulgaria (16%) and Romania (39%) are the least dependent on American tech, and Russia is not even on the list of nations dependent on the US.

National security concerns emerge when utilities, transport systems, and healthcare facilities communicate through networks governed by foreign jurisdictions, but perhaps not when the network belongs to the US.

The reliance stretches far beyond convenience; it embeds itself in the very systems Europeans use every day – dependence on foreign technology does not just present a financial vulnerability; it raises questions about surveillance, geopolitical leverage, and the future of innovation.

AI training programs outside Europe’s control can sweep in sensitive business data, while reliance on external platforms exposes companies to warrantless legal demands.

This arrangement has also fostered a talent and capital drain, as engineers and investors direct their focus toward Silicon Valley rather than strengthening European ecosystems, whether through proprietary services or alternative Linux distros.

Some argue that American technology simply offers the best tools available, which may be true in terms of efficiency and global reach, yet the consequences of reliance are increasingly hard to ignore, since the US can turn off the switch at any time, and thousands of companies will be in crisis.

The fact that so many European firms cannot operate without American software demonstrates the fragile nature of Europe’s autonomy.

Rather than securing independence, Europe risks locking itself further into external dependencies at a moment when political winds in Washington are shifting.

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August 25, 2025 0 comments
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