ECB Pushes for On-Chain Euro Settlement as Stablecoin Dominance Grows
The European Central Bank (ECB) is exploring ways to issue central bank money directly on blockchain networks. ECB Executive Board member Isabel Schnabel made this announcement at the Jackson Hole symposium, arguing that tokenized financial markets need access to central bank money for settlement.
Schnabel warned against relying solely on stablecoins as settlement assets, stating that private issuers cannot create additional liquidity during times of financial stress in the same way a central bank can. She emphasized that 'stablecoins are best understood as complements to central bank money, not substitutes for it.'
The ECB is already moving towards blockchain-based settlement through Pontes, which will connect TARGET Services with distributed ledger technology platforms. The initiative aims to launch in September 2026 and has been tested previously between May and November 2024.