> YOUNEWS DAILY REPORT

EU Accelerates Digital Euro Plans Amid US Stablecoin Regulation

Updated: 2025-08-22 09:13 BST
Built by FastAI Consulting

Top Lines
- EU fast-tracks digital euro development following US stablecoin regulation.
- ECB considers public blockchains like Ethereum for digital euro.
- Move aims to counter US dominance in digital assets.

What Happened
The European Union is expediting the launch of a digital euro in response to the recent passage of the Genius Act in the U.S., which regulates the $288 billion stablecoin market. This U.S. legislation has raised concerns within the EU about the euro's competitiveness and strategic autonomy. In response, EU officials are reevaluating their approach to the digital euro, now considering the use of public blockchains like Ethereum or Solana, rather than private ones previously favored due to privacy concerns. The European Central Bank (ECB) has been developing a digital euro for years to provide a secure, central bank-backed payment method as cash usage declines. ECB board member Piero Cipollone warned earlier that U.S. dominance in digital assets could threaten Europe’s financial stability and lead to euro deposits shifting abroad. While some euro-denominated stablecoins already exist, a central bank-issued token would strengthen the region’s digital economy. The ECB continues to explore both centralized and decentralized technologies, though no final decision has been made. (ft.com)

Why It Matters
- Market Impact: Accelerating the digital euro could enhance the EU's digital economy and reduce reliance on U.S. financial systems.
- Policy Implications: The move reflects the EU's strategic response to U.S. regulatory actions, aiming to maintain financial sovereignty.
- Technological Shift: Considering public blockchains indicates a shift towards more transparent and decentralized financial systems.

Key Numbers / Facts
- $288 billion: Size of the U.S. stablecoin market regulated by the Genius Act.
- €800 billion: Potential mobilization for European defense under the Readiness 2030 initiative.

Timeline (Today, 2025-08-22)
- 09:13 BST: EU accelerates digital euro plans in response to U.S. stablecoin regulation. (ft.com)

Sources
- Financial Times – EU speeds up plans for digital euro after US stablecoin law — published 2025-08-22 09:13 BST
- Financial Times – FirstFT: EU accelerates digital euro plans — published 2025-08-22 09:13 BST