ECB Links Payment System to Blockchain Markets with Pontes Launch
The European Central Bank (ECB) has launched Pontes, a new service that links its payment system with blockchain-based financial markets. This move aims to enable faster and more efficient transactions in euros backed by the ECB, rather than relying on stablecoins or other forms of private money.
Pontes is currently available for an initial group of users including Deutsche Bank and Santander, which have completed their onboarding process. The service operates from 8 a.m. to 4 p.m. CET on business days, with the ECB planning to expand its services over time.
The ECB will also invest a portion of its €23 billion in own funds into blockchain-based securities, focusing on highly-rated, euro-denominated debt issued by public institutions. This move reflects a broader shift towards digital securities and shared digital ledgers, as central banks seek to reduce their dependence on private alternatives.
The ECB's push for blockchain-based finance is part of its efforts to develop a digital euro for consumers, which it aims to launch in 2029. The project seeks to reduce the bloc's reliance on U.S. credit cards and increase financial stability within the euro area.