Grab EXTRA 10% OFF all Tangem products. Till Oct 25ECB explores blockchain settlement and dollar stablecoins
7 Banking The ECB is exploring blockchain-based settlement models while European issuers push for regulated dollar stablecoins to meet global demand for USD liquidity.
The European Central Bank (ECB) is actively exploring ways to integrate central bank money into blockchain-based financial systems. At the Bank of England’s Future of Money conference, ECB Executive Board member Isabel Schnabel presented three models: direct issuance of central bank reserves on programmable platforms, a linking layer connecting current real-time settlement systems to distributed ledger technology (DLT), and private settlement tokens fully backed by central bank reserves. The ECB’s goal is to maintain the two-tier monetary system, ensuring central bank money remains the core settlement asset while commercial banks continue to provide deposits and services. The ECB also aims for 24/7 on-chain euro settlement by 2028, which could boost market liquidity and extend operating hours. Meanwhile, European regulated issuers are advocating for MiCA-compliant dollar stablecoins to meet strong business demand for USD liquidity in global payments, noting that over 99% of the stablecoin market is dollar-pegged. These efforts reflect the broader expectation that tokenization will transform financial services with faster, safer, and smarter settlements.
