The EU is considering a significant initiative that could change the financial landscape: integrating the "Digital Euro" with public blockchains such as Ethereum and Solana. This potential strategic shift stems from the advancement of the U.S. stablecoin bill, prompting the EU to reassess its digital money plans.

If this measure is implemented, it will have far-reaching effects:

First, through the integration of public blockchain, the digital euro will gain unprecedented legitimacy and composability. It may exist on the public blockchain in the form of controlled smart contracts, directly interfacing with existing digital wallets, payment systems, as well as decentralized finance (DeFi) and real-world asset (RWA) infrastructure, greatly enhancing its utility and popularity.

Secondly, this plan will rebalance compliance requirements with privacy protection. The EU has strict requirements for Anti-Money Laundering (AML) and Know Your Customer (KYC), while also valuing the protection of privacy in small transactions. Technically, it may adopt solutions such as restricted token standards, address whitelisting, and zero-knowledge proofs to achieve a balance of "small amount anonymity and large amount auditability."

Compared to relying solely on private chains, utilizing public chains can fully leverage mature ecosystems, including various wallets, oracles, custody services, and RWA protocols, which not only reduces deployment and maintenance costs but also allows for a quicker response to market demands.

The impact of this initiative on the market may gradually become apparent:

In the short term, this news may bring positive market sentiment, but it will not immediately translate into substantial impact.

In the medium term, once the pilot projects are implemented, the verification, compliance wallets, oracles, RWA, and compliant DeFi projects in the Ethereum and Solana ecosystems may directly benefit. The stablecoin and RWA sectors will also welcome new opportunities, as banks and payment institutions can link on-chain settlements of euro cash or bonds with the digital euro to improve the compliance loop of RWA. Furthermore, the demand for compliant infrastructure such as KYC wallets, custody services, on-chain verification, and privacy computing (especially zero-knowledge proof technology) will also face growing demand.

Overall, if the digital euro successfully aligns with public chains, it will mark a true integration of sovereign currency and cryptocurrency networks, bringing medium-term benefits to public chain ecosystems like Ethereum and Solana, as well as compliance-oriented Web3 infrastructure. However, market participants should be cautious about short-term emotional fluctuations and closely monitor the specific details of official documents and pilot projects, as these are the key factors that determine the value in various related fields.