Hedera Hashgraph’s Potential Role in The European Union’s Digital Vision AllinCrypto November 12, 2025
As the European Union moves closer to launching a digital euro, attention is turning to which technologies could power the next major financial innovations, with Hedera being among the lists.
With the European Central Bank now entering the preparation phase of the digital euro project, Hedera Hashgraph has emerged as a potential contender for the underlying infrastructure of CBDCs, stablecoins, and tokenized funds.
The digital euro is designed to complement physical cash while providing a secure and sovereign payment method out of reach of foreign banks. Could Hedera be used in other similar ventures?
Why Hedera Hashgraph Aligns With the European Central Bank
European Central Bank President Christine Lagarde has been the strongest advocate of the project, emphasizing that a central bank–issued digital currency would strengthen Europe’s financial outlook and the euro’s stability.
Hedera Hashgraph offers a range of capabilities that align closely with the ECB’s technical goals and other possible CBDC applications in Europe.
In Australia, Hedera Hashgraph was chosen to participate in a wholesale CBDC pilot with the Reserve Bank of Australia. Hedera Hashgraph was also chosen as part of a DLT innovation challenge with the Bank of England.
For wholesale CBDC use, which focuses on settlements between banks and institutions, Hedera’s governance structure, scalability, and security would be appealing.
Although the ECB has stated that no public blockchain will be used to host or help with the digital euro project, that doesn’t mean a ledger could be utilized in other avenues, such as CBDCs and payment systems.
When it comes to tokenization and digital assets, Hedera stands out amongst the crowd for its robustness as a network. In 2025, Lloyds Bank, Aberdeen Investments, and Archax used Hedera to tokenize money-market funds in the UK.
The use cases are all there, and soon it may come down to one large enterprise or bank implementing it in a large-scale, real-world setting. Europe could be next to utilize the network for its digitization projects.
Another factor in Hedera’s favor is its energy efficiency. The network operates with minimal environmental impact and is carbon-negative. This characteristic fits within the EU’s sustainability objectives and climate commitments, such as the European Green Deal.
Wholesale CBDCs and Hedera’s Technological Edge
While retail will benefit from the digital euro as a digital form of cash, wholesale CBDCs could redefine how Europe’s banking system settles and transfers value.
A wholesale digital euro would enable instant cross-border payments, improve liquidity, and reduce reliance on intermediaries.
Hedera’s tokenization and smart contract capabilities make the network very well-suited for such an important role in finance. With the Hedera Token Service, regulated institutions could issue programmable digital euros or settlement tokens that comply with European financial standards.
The network’s interoperability features could also allow it to connect seamlessly with existing ECB payment systems, bridging the gap between traditional finance and distributed ledger technology.
If adopted for CBDCs or digitization, Hedera could help the EU establish a resilient and efficient digital monetary system capable of serving both retail and institutional needs, similar to how Swift has chosen to work with Eteruem’s layer 2 network, Linea, for cross-border payment goals.
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