ECB Taps Blockchain with New Payment Service and Digital Euro Plans
The European Central Bank (ECB) has launched Pontes, a new service connecting its payment infrastructure with blockchain-based financial markets. The platform will enable banks and investors to settle blockchain-based transactions using central bank money in euros.
The ECB plans to allocate a small portion of its EUR 23 billion in own funds to blockchain-based securities, focusing on highly rated, euro-denominated debt issued by public institutions. This move gives the central bank direct exposure to tokenized financial assets while allowing it to gain practical experience with blockchain-based markets.
The ECB's development of a digital euro for consumers is part of its broader exploration of blockchain and digital forms of money. The central bank aims to launch the digital euro in 2029, adding a retail component to its efforts to strengthen Europe's payments infrastructure and reduce reliance on non-European payment networks.