Schnabel Seeks Blockchain-Based Central-Bank Money

European Central Bank Executive Board member Isabel Schnabel has called for central-bank money to be placed on blockchain technology. In a statement, Schnabel emphasized that this move would preserve the role of money as the foundation of settlement and enable central banks to leverage the programmability of distributed ledgers.

Schnabel's proposal aims to modernize monetary-policy implementation, collateral management, and liquidity provision, thereby fostering financial stability. This is in line with the ECB's efforts to revamp its approach to monetary policy execution.