The European Union (EU) is accelerating its plans to create a digital euro, a central bank digital currency (CBDC) that would seek to compete with the widespread dominance of dollar-pegged stablecoins such as USDT and USDC. 

According to the Financial Times, among the alternatives being studied by the European Central Bank (ECB) as a technological base are networks such as Ethereum and Solana. 

According to the aforementioned source, the ECB is evaluating "various technologies (both centralized and decentralized) in the development of the digital euro, including distributed ledger technologies," although no decision has yet been made.  

If the digital euro were to run on a public blockchain (like Ethereum or Solana), it could be exchanged globally without friction, increasing its circulation and use. 

However, European officials are said to be cautious about such a scenario: the public nature of transactions on networks like Ethereum or Solana raises concerns about user privacy, a sensitive issue for a CBDC. 

Criticism was quick to come. One person on X questioned the project's technical viability: "Stop the fake news. An EU stablecoin would need to handle over 100,000 transactions per second to be viable. Neither Ethereum nor Solana could pull that off even in their wildest dreams."

This comment reflects a fundamental debate: while networks offer transparency and openness, their current scalability limits contrast with the demands of a continental monetary system. 

At the time of this writing, Solana averages 3,800 transactions per second (TPS) and the Ethereum ecosystem (L1 and L2) averages around 300 TPS.  

While the user who posted a reference TPS amount of 100,000 on X may not seem to be an authority in the ecosystem, it does make sense to think that an asset potentially used by an entire continent will require a structure that supports a significant number of operations.  

In this context, the current TPS on Ethereum and Solana appear to be far from the benchmark of 100,000 TPS needed "to be viable" for the digital euro project. 

The reason behind the European rush 

The European rush to this project would also respond to recent movements in the United States.  

Following the passage of the so-called Genius Act, which provides a legal framework for dollarized stablecoins, the EU began to "rethink plans for the digital euro."

European officials fear the regulations will further encourage the use of digital assets based on the US dollar, weakening the euro's international standing. 

A spokesperson quoted by the outlet summed up the concern: "It's starting to generate conversations that didn't exist before the Genius Act."

For the ECB, the issue is not just technological, but strategic: ensuring that the common currency maintains its central role in the coming digital economy.