With the implementation of the U.S. stablecoin bill, the European Union is exploring ways to accelerate its euro stablecoin plan, but it is filled with deep anxiety.

After the U.S. passed a comprehensive stablecoin bill, EU officials are speeding up their digital euro plan. Many Europeans believe that this U.S. bill poses a threat to the competitiveness of the euro, the EU's single currency.

U.S. Moves Make the EU Uneasy

The "Genius Act," signed into law by President Trump in July this year, establishes the first comprehensive rules for the $288 billion stablecoin market.

Under the bill, issuers of dollar-pegged tokens must hold sufficient liquid asset reserves, fulfill licensing obligations, and comply with strict reporting standards.

Supporters argue that this framework strengthens consumer protection while still leaving room for innovation—a balance that regulators have struggled to achieve.

The swift move by the U.S. has made European policymakers uneasy, as they had been proceeding more cautiously with their own project.

According to the Financial Times, insiders say this shift in the EU began after the U.S. approved the "Guidance and Establishment of the U.S. Stablecoin National Innovation Act" (also known as the "Genius Act"). Since then, EU officials have been rethinking the architecture of the digital euro project.

Anxiety Over Public vs. Private Chains

It is reported that EU officials are currently discussing whether the digital euro should operate on public chains like Ethereum or Solana, diverging from earlier plans that favored a private ledger controlled by the European Central Bank.

Proponents argue that using open blockchain public chains could allow the euro to circulate more widely and promote its use. Critics, however, warn that public chains could expose transactions to scrutiny and raise privacy concerns.

Open Public Chains Could Expand the Euro's Influence

The European Central Bank began researching the digital euro in October 2021. Since then, the project has been regarded as a central bank digital currency. Its purpose is to complement cash and adapt to an increasingly digital economy. Additionally, it aims to ensure that Europeans can continue to use central bank money. Finally, it seeks to reduce reliance on foreign payment providers.

Currently, international card networks handle most payment transactions in the eurozone, with non-European companies accounting for 68% to 72% of the market share.

EU officials worry that if they do not act quickly, the U.S. regulatory framework could accelerate global demand for dollar-backed tokens. As a result, the euro's role in cross-border payments could gradually weaken.

Some policymakers believe that a digital euro based on an open blockchain could enhance the euro's influence outside the eurozone. A public chain-based euro would also align more closely with the model promoted by the U.S. However, others fear that this could open the door to risks that Europe has long tried to control.

For now, the choice between a public or private chain for the euro stablecoin remains under discussion, but with the U.S. move, the debate has become more urgent.