European Union officials are stepping up efforts to launch a digital euro following the passage of new US Stablecoin legislation, according to people familiar with the matter cited by the Financial Times.
The move follows the approval of the Genius Act by the US Congress, which regulates the $288 billion stablecoin market dominated by dollar-pegged tokens.
The speed of the legislation “rattled” European policymakers, prompting calls to “push” and “speed up” the euro’s digital rollout.
The European Central Bank has been exploring a central bank digital currency for several years.
Officials are now weighing whether to run it on public blockchains such as ethereum or solana, citing privacy and global access concerns.
ECB board member Piero Cipollone warned that growing US dominance in stablecoins could threaten Europe’s financial autonomy.
While euro-denominated tokens already exist, officials argue that a digital euro is needed to secure the currency’s influence in global payments.