ECB Outlines Three Models for Putting Central Bank Money…
By Tobi Opeyemi Amure
AI summary of the source article
ECB Executive Board member Isabel Schnabel presented three models for putting central bank money onchain at the Bank of England's Future of Money conference. The options include issuing natively tokenized central bank reserves on a programmable platform, linking existing real-time gross settlement systems to DLT platforms via an interoperability layer, or allowing private intermediaries to issue tokens backed by central bank reserves. The framework supports benefits like programmability and atomicity, complementing existing initiatives like the Eurosystem's Pontes platform, which launched on September 21, and the Appia project exploring long-term tokenized financial architectures.
Why it matters
The models aim to ensure central bank money retains its role as the monetary system's anchor as tokenization, stablecoins, and digital assets alter transaction settlement infrastructure.
Key facts
- ECB Executive Board member Isabel Schnabel presented three models for onchain central bank money on October 1, 2026.
- The Eurosystem launched Pontes on September 21 to offer dual settlement through TARGET2 or DLT and provide tokenized central bank money.
- The ECB is exploring longer-term tokenized financial architecture through the Appia project and has opened merchant applications for a digital euro pilot starting in late 2027.