ECB outlines three models to bring central bank money onchain
The European Central Bank is evaluating three approaches to bring central bank money onchain, ranging from direct token issuance to bridges and private settlement tokens, as financial institutions explore digital settlement infrastructure.
The European Central Bank is weighing three models to bring central bank money onto distributed ledger technology networks, according to reports by The Block and remarks highlighted by ECB Executive Board member Isabel Schnabel. The central bank's analysis comes as financial institutions actively explore updated settlement infrastructure.[4][3][2]
The three potential architectures include direct issuance of central bank reserves on a programmable platform, establishing an RTGS-to-DLT bridge to connect real-time gross settlement systems with distributed ledger platforms, and using private intermediaries to issue reserve-backed settlement tokens.[1][2][3]
If adopted, these approaches could enable central bank money to settle transactions involving tokenized securities, deposits, and stablecoins directly across DLT networks.[3]
Key facts
- The European Central Bank outlined three models for bringing central bank money onchain.
- ECB Executive Board member Isabel Schnabel noted the bank is weighing three paths, including issuing reserves directly on a programmable platform.
- The three models consist of direct tokenized reserves, an RTGS-DLT bridge, and private reserve-backed settlement tokens through intermediaries.
- The mechanisms are intended to enable central bank money settlement for tokenized securities, deposits, and stablecoins on DLT networks.
- The outline was presented as financial institutions explore settlement infrastructure.
Sources · 4 sources
- TW
The Wolf Of All Streets@scottmelkerPost on X ·
ECB’S SCHNABEL DETAILS THREE PATHS FOR ONCHAIN CENTRAL BANK MONEY: DIRECT TOKENIZED RESERVES, RTGS-DLT BRIDGE, AND PRIVATE RESERVE-BACKED SETTLEMENT TOKENS
Open source - CO
CoinMarketCap@CoinMarketCapPost on X ·
LATEST: 🇪🇺 ECB Executive Board member Isabel Schnabel says the bank is weighing three ways to bring central bank money onchain, including issuing reserves directly on a programmable platform. https://t.co/djOZukA5j2
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: The ECB outlined three models for bringing central bank money onchain, including direct issuance, bridges, and private intermediaries. The approaches could enable central bank money to settle transactions involving tokenized securities, deposits, and stablecoins on DLT networks.
Open source - TB
The BlockArticle ·
ECB outlines three models for putting central bank money onchain The ECB outlined three models for bringing central bank money onchain as financial institutions explore settlement infrastructure.
Open source