A significant development in the European payments landscape is underway, as a large consortium of 37 banks works on a blockchain payment alternative to euro stablecoins. This project seeks to make euros internet-native while maintaining trust, safety, and the deposit funding model.
The initiative comes at a time when Europe's regulatory environment is evolving with the EU's Markets in Crypto-Assets Regulation (MiCA) and the European Central Bank's (ECB) digital euro preparations. MiCA sets clear rules for fiat-referenced tokens, while the ECB advances the digital euro design phase.
The bank-built blockchain rail will enable programmable, instant settlement with compliance within a framework recognized by supervisors. This is in contrast to open, bearer-style stablecoins used in permissionless DeFi, which may not be suitable for large-scale payments in Europe.