ECB Moves to Modernize Payments With Central Bank Money Settlement

The European Central Bank (ECB) has unveiled a strategy to modernize financial transactions by enabling settlements in central bank money.

The initiative follows a two-pronged approach: developing a settlement platform for transactions in central bank money and creating a long-term framework for integrating digital ledger technology into financial settlements, including foreign exchange transactions.

The ECB aims to strengthen Europe’s digital asset market through this effort.

“We are committed to innovation while ensuring financial stability and security,” said ECB Executive Board member Piero Cipollone, who is leading the project. He emphasized that the initiative will help streamline Europe’s financial markets and foster greater integration.

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Europe has been at the forefront of central bank digital currency (CBDC) trials, particularly in cross-border payments. The ECB has also underscored the need for digital payment solutions—such as a digital euro—to compete with dollar-backed stablecoins.

Despite these advancements, the ECB has traditionally been wary of cryptocurrencies. ECB President Christine Lagarde has dismissed Bitcoin as a treasury asset, citing concerns over its volatility and potential for illicit activities.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.