ECB Proposes Blockchain Euros for Wholesale Settlement

The European Central Bank (ECB) has proposed issuing euros directly onto a blockchain for interbank settlement, shifting the conversation from consumer payments to the final settlement layer of tokenized markets.

This move is driven by the ECB's desire to address the dominance of dollar-pegged stablecoins in wholesale settlement, which poses a monetary sovereignty problem for Europe.

The proposal does not aim to replace stablecoins overnight but rather to create an alternative that offers central bank finality and crisis liquidity, distinguishing it from private issuers.