ECB Pushes Blockchain-Based Euros to Replace Stablecoins
The European Central Bank (ECB) wants to issue euros directly onto a blockchain. Executive Board member Isabel Schnabel made this case at the Jackson Hole symposium, arguing that stablecoins are not suitable as settlement money.
Schnabel's objection is not about the safety of stablecoins, which can be designed to be almost perfectly secure. Instead, she points out that in times of panic, people want cash quickly, and a central bank can create more of it. A stablecoin issuer cannot do the same.
The ECB sees stablecoins as complements to central bank money, not substitutes for it. This is why they are pushing for a blockchain-based solution, which would allow them to control the supply of euros directly.
Pontes, a project that links TARGET Services with market blockchain platforms, will go live next month. It has already been tested with 64 institutions across nine jurisdictions, settling nearly €1.6 billion in central bank money.