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.

READ MORE:

The Most Hyped Crypto Project Pi Network Crashes After Launch

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