Outside Source
The Governing Council of the European Central Bank has taken a step to advance its initiative to settle transactions recorded on distributed ledger technology using central bank money.
The decision, announced on Feb. 20 in a press release, aims to integrate distributed ledger technology with the existing TARGET Services infrastructure.
The ECB’s approach will follow a two-track strategy. The first track focuses on rapidly developing a safe and efficient platform for DLT-based settlements while ensuring interoperability with TARGET Services. The second track will explore a long-term integrated solution for settling distributed ledger technology-based transactions in central bank money, including foreign exchange settlements.
European Central Bank Executive Board member Piero Cipollone emphasized the importance of balancing innovation with financial stability, stating: “We are embracing innovation without compromising on safety and stability.”
According to a crypto. news report, Cipollone, in an interview with Le Monde late last year on the subject of digital payments, said, “That’s one of the reasons why we are working on a digital euro, which would be an electronic form of cash for digital payments.”
Building an integrated European market
This initiative aligns with the European Central Bank’s broader efforts to establish a more integrated European market for digital assets. The agency says it builds on prior exploratory work conducted between May and November 2024, which involved 64 participants, including central banks, financial market participants, and distributed ledger technology platform operators.
These trials and experiments, which included actual settlements in central bank money, set the stage for this expanded initiative.
As part of the ECB’s strategy, the Governing Council has also called for the promotion of a digital capital markets union, which will further facilitate the growth of digital asset markets across Europe.
In contrast, this recent development calls to mind the take of blockchain expert Fiorenzo Manganiello, who opined in a crypto.news report earlier this month that European Central Banks could start accumulating Bitcoin this year.
This article first appeared at crypto.news
