ECB Links Blockchain Markets with Euro Area Payment Systems

The European Central Bank (ECB) has taken a significant step towards creating a digital euro by launching a project that links blockchain markets with the euro area's existing payment systems. The Pontes project, which is set to be replaced by Appia in 2028, will enable banks to settle tokenised wholesale transactions in central-bank money.

The ECB aims to reduce Europe's reliance on US payment firms and limit the spread of dollar-pegged stablecoins championed by US President Donald Trump. The Pontes project is seen as a key step towards developing a digital euro for consumers, which is expected to be introduced by 2029.

According to the ECB, there has been significant interest in Pontes, with an initial group of market participants and DLT operators ready to start using it immediately. Others have committed to connecting in the months ahead.