The European Central Bank (ECB) has announced plans to create a blockchain-based payment system that will allow financial institutions to make payments using the central bank’s money. This initiative is seen as one of the possible steps towards the implementation of a central bank digital currency (CBDC), informs Bloomberg.
According to the statement, the implementation of the initiative will consist of two stages. At the first stage, the ECB plans to develop a blockchain platform that will be integrated with Target’s current settlement system. At the next stage, it is planned to introduce an “integrated long-term solution”, which will also cover currency exchange operations. The exact dates of the launch are currently not disclosed.
This ECB project has certain analogies with the initiative of the Swiss National Bank, which launched a pilot version of the CBDC for settlements with digital bonds back in December 2023. The Swiss project was recently extended until at least 2026.
It will be recalled that the ECB previously announced its intention to make a decision on the digital euro in 2025. In preparation for the launch, special rules for the digital euro have been developed, which will standardize payment processes and ensure a uniform user experience.
