ECB Eyes Blockchain Presence for Central Bank Money
The European Central Bank (ECB) is exploring ways to bring its money onto distributed ledger technology platforms, also known as blockchain. ECB Executive Board Member Isabel Schnabel spoke at the Jackson Hole Economic Policy Symposium on August 28, 2026.
Schnabel discussed Darrell Duffie's paper 'Tokenized finance and the perimeter of central banking,' which highlights the potential benefits of tokenization in wholesale finance. Tokenization allows financial assets and money to be represented as digital tokens on programmable platforms.
According to Schnabel, central bank money is critical for the development of tokenized finance. Stablecoins may not be a suitable substitute for central bank money due to their limited ability to provide liquidity.
The ECB is considering bringing its reserves onto DLT platforms to leverage the programmability of distributed ledgers and modernize monetary policy implementation, collateral management, and liquidity provision. Schnabel emphasized that this would enable the ECB to foster financial stability.