ECB’s Strategic Shift Toward Onchain Central Bank Money
- Isabel Schnabel of the ECB emphasizes the necessity for central bank money to be on blockchain, highlighting the limitations of stablecoins during financial stress.
- Project Pontes is set to launch in September, aiming to integrate ECB’s TARGET Services with distributed ledger technology (DLT) platforms.
- Project Appia aims for a comprehensive tokenized-market framework by 2028, with trials processing approximately €1.6 billion across nine jurisdictions.
- Since March, the ECB has accepted DLT-based assets as eligible collateral for its credit operations.
The European Central Bank is advancing its integration of blockchain technology through Project Pontes and Project Appia, aiming to enhance financial transaction efficiency and security by placing central bank money on blockchain infrastructure.
These initiatives reflect a significant shift in the ECB’s approach towards embracing DLT as a foundational infrastructure rather than merely regulating it around crypto markets and stablecoins. (Source)
