The EU intends to accelerate the creation of a digital euro after the US law on stablecoins

European Union (EU) diplomats are accelerating the implementation of plans to create a digital euro after the adoption of a new law in the United States on stablecoins, which has increased concerns about the competitiveness of the European digital currency. This was reported on August 22 by the Financial Times (FT) newspaper, citing sources.

"Officials are now considering the possibility of launching a digital euro on a public blockchain such as Ethereum or Solana," the publication says.

It is clarified that the implementation of such an initiative began after the adoption by the American leader Donald Trump of the Genius Act bill, which sets out the regulatory framework for stablecoins, they directly depend on the value of the dollar.

According to the newspaper, European officials had previously planned to launch the euro on a private blockchain, but changed their decision for privacy reasons. EU diplomats believe that such a measure is necessary to maintain the dominant position of the single currency on the continent.

Fyodor Sidorov, a private investor and founder of the School of Practical Investing, told Izvestia on May 3 that stablecoins remain one of the most stable instruments on the crypto market, but their use is fraught with risks. According to him, although stablecoins seem nominally stable, they are still part of the crypto infrastructure and are subject to the same risks. In particular, these include insufficient transparency on the part of issuers, lack of guarantees, as well as vulnerability to technical failures, blockages and regulation.

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