Crypto News: ECB Plans Blockchain Settlement in Central Bank Money Next Year
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ECB plans blockchain settlement in central bank money next year, advancing digital euro preparations and cross-border payment integration under EU oversight. The European Central Bank plans a major shift in payment infrastructure starting next year. It will allow blockchain-based settlement in central bank money. Moreover, officials affirmed preparations for a digital euro. These steps are a response to the growing urgency to modernise money for a digital economy. ECB Prepares Blockchain Settlement and Digital Euro Framework ECB executive board member Piero Cipollone said distributed ledger transactions will settle central bank money next year. He said the institution is preparing systems for a digital euro. Additionally, the ECB is aiming to create links between payment infrastructures across the international level. Therefore, cross-border settlement efficiency is still a priority. Digital payments become the norm in everyday transactions in Europe. Meanwhile, payments and finance continue to be entered by technology firms. As a result, traditional financial institutions have become technology-driven entities. Central banks are now under similar pressure to change. Related Reading: Crypto News: Stablecoin Market Tops $280B as ECB Flags Systemic Risk | Live Bitcoin News The ECB argues money needs to be stable and trusted in the digital environment. Otherwise, central bank money might lose relevance. As a result, this would increase the risk of financial stability. Cipollone said central banks have to shape change, not follow it. Within the euro area, uniformity is important. One euro must be worth one euro, no matter what form it is in. Therefore, the central bank leadership provides monetary consistency. This precept lies behind the ECB’s overall strategy. The Eurosystem has already developed large financial infrastructure. These are T2 for large payments and TIPS for instant payments. Securities and collateral systems also have good functionality. Together, they support integrated euro area markets. However, officials…
Filed under: News - @ December 20, 2025 4:20 am