The European Central Bank (ECB) is advancing plans for a blockchain-based payments system, paving the way for a potential digital euro. Announced Thursday, this initiative aims to modernize Europe’s financial infrastructure through distributed ledger technology (DLT).
The rollout will occur in two phases:
1. Phase One: Developing a payment platform that enables settlements in central bank money, integrated with the current TARGET system, which handles cash, collateral, and securities transfers across the eurozone.✨
2. Phase Two: Exploring a fully integrated blockchain solution for future central bank money transactions.🌿
“This is an important contribution to enhancing European financial market efficiency through innovation,” said ECB Executive Board member Piero Cipollone.📌
The move aligns with the ECB’s long-term goal of creating a single capital market across Europe. A digital euro could strengthen the eurozone’s economic position and reduce reliance on non-European payment providers, reinforcing financial sovereignty.💯
The ECB began exploring a digital euro in 2021 and has since refined its approach, engaging with stakeholders to ensure the system meets European needs. While a timeline hasn’t been set yet, further updates are expected in due course.✨✨