ECB Executive Calls on Central Banks to Issue Money Directly on Blockchain

Isabel Schnabel, an executive board member of the European Central Bank (ECB), has called on central banks to adopt blockchain technology to preserve their role in the financial system. Speaking at the Jackson Hole symposium on August 28, 2026, Schnabel emphasized that central bank money must be issued directly on the blockchain.

Schnabel's statement is a direct response to Darrell Duffie's paper on tokenized finance. According to her, central bank reserves should be native assets on distributed ledgers, not just off-chain counterparts. To fully leverage tokenization, central banks too must go on-chain.

The ECB official highlighted three technical options for issuing tokenized reserves: issuing them directly on a programmable ledger, linking current payment systems to tokenized platforms via bridges, or entrusting this tokenization to a private intermediary. Schnabel showed a preference for the first option, which would allow blockchain to make central bank money truly programmable.

The Pontes project is expected to launch in September 2026 and aims to connect blockchain platforms to the Eurosystem's TARGET services. The Appia project will design the architecture, technical standards, and legal framework of a true European tokenized asset market, with a comprehensive plan expected for 2028.

Schnabel also emphasized that central bank reserves remain superior to stablecoins as the ultimate settlement asset. According to her, a settlement asset must satisfy two criteria: absolute safety and supply elasticity. Stablecoins are well-designed but cannot expand their supply like a central bank in times of stress.