The European Central Bank (ECB) is racing to launch the digital Euro, which would allow EU citizens to use a digital wallet for their euros.
The ECB may explore how distributed ledger technology could help develop a secure, scalable, and
Among the networks that could possibly be chosen in the near future to help facilitate features and speed, Hedera Hashgraph & Algorand stand out as a contenders.
The ECB’s vision for the digital euro is one of the most ambitious CBDC-like strategies in the world. While the US announced that CBDCs would never be used in the US, the EU has switched lanes.
Stablecoins are set to dominate digital currency options in the US, with the state of Wyoming being the first to launch a state-linked stablecoin, proof of the US’s openness to digital currencies and the networks they run on, such as Solana, Hedera Hashgraph, and Ethereum.
The European Central Bank, led by Christine Lagarde, wants to develop a digital euro as part of a wider strategy of European market protectionism.
Christine Lagarde has stated that Visa, Mastercard, and even PayPal, when used in the European Union, report data back to the US, China and keep fees outside of the EU.
— ALLINCRYPTO (@RealAllinCrypto) September 22, 2025
Christine Lagarde, President of the @ecb will use the Digital Euro & its electronic wallet to create a new type of finance, she has stated: “Visa, MasterCard, PayPal and Alipay are all controlled by American or Chinese companies."“We should make sure there is a European… pic.twitter.com/gFLIKmRh7W
For Lagarde, a digital euro would establish a protective alternative currency whereby citizens can keep their funds on digital wallets from regional banks, allowing users to spend euros normally, but being able to retain sensitive information and possibly fees within the European Union.
To host a digital euro that can manage millions of transactions throughout the whole region, the network would need to be fast, reliable, and possibly energy-efficient.
The network would also need to follow compliance with Europe’s strict financial and MiCA regulations for crypto.
At the same time, the infrastructure must be scalable enough to serve increasing populations beyond 2029 when the digital euro is set to be launched.
While Ethereum and other blockchains dominate today’s DeFi markets, many of them face bottlenecks in speed, costs, and institutional compatibility.
For a CBDC of the euro’s magnitude, the ECB could seek a network with scalable, fast capabilities like Hedera Hashgraph. Already, the ECB trialed the Algorand network. The trials in 2024 ran from May – November.
Algorand, created by Silvio Micali and originally based in Italy, sounds like a perfect choice for the European Central Bank. The network was championed to lead CBDC initiatives by Italian economist Piero Cipollone. But how would Algorand match against Hedera Hashgraph?
Hedera is not a blockchain in the traditional sense. Instead, it uses the Hashgraph consensus algorithm, which delivers finality in seconds and boasts some of the highest throughput levels in the industry.
This kind of performance is crucial for supporting a retail digital currency, where payments must be processed as quickly and seamlessly as cash or card transactions from Visa.
Equally important is Hedera’s governance model, which leads to easier compliance. The Hedera Council includes major corporations such as IBM, Google, Deutsche Telekom, and Standard Bank.
These organizations run the network’s nodes and are able to make decisions on Hedera’s direction, ensuring a balance of decentralization and accountability.
For regulators like the ECB, this transparent and corporate-backed governance may be far more attractive than anonymous node operators.
Algorand is known to have never had a network outage. The Algorand network, like Hedera, boasts the fastest speeds in the crypto market, able to settle transactions near instantly thanks to its PPOS consensus.
Despite Algorand’s strengths, its security when compared to Hedera could reach some bottlenecks. Hedera’s Hashgraph consensus is a security powerhouse, and even if the network were under attack, theoretically, Hedera would still be able to function normally while dealing with threats.
If the ECB continues to test blockchain solutions for the digital euro outside of Algorand, Hedera could be positioned as a strong candidate.
Although the European Central Bank has never shown interest in using a public blockchain as the digital euro’s base layer, decisions could indeed change between now and 2029.
Another thing to keep in mind is privacy. Hedera’s HashSpehre network is due to launch soon. As a private network pegged to Hedera, there are additional options for enterprises and governments seeking to utilize ledger technology.
Overall, the ECB faces a historic task trying to modernize Europe’s financial system without sacrificing stability or trust.
Hedera Hashgraph and even Algorand can offer a credible path forward, but it will depend on European regulators and the overall direction that the President of the ECB, Christine Lagarde, is willing to take.
The post Which Crypto Network Could Power the Digital Euro? first appeared on AllinCrypto.
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