Central Banks Must Embrace Blockchain to Safeguard Their Role

Isabel Schnabel, an executive board member of the European Central Bank (ECB), has called for central banks to adopt blockchain technology to enhance their role in financial systems.

Schnabel stated that by embracing blockchain, central banks can not only respond more quickly to market tensions but also leverage the technology to improve liquidity provision and monetary policy operations.

She emphasized that for central banks to benefit from the advantages of blockchain, they must 'on-chain' themselves, introducing their central bank money into a tokenized environment and modernizing policy instruments.