The European Central Bank (ECB) is taking a major step toward using blockchain technology to improve central bank money transactions. This move could help boost blockchain and cryptocurrency adoption while modernizing Europe’s payment systems.
But what exactly is the plan, and why now? Let’s break it down.
In a recent press release, the ECB announced that its Governing Council has decided to expand efforts to settle transactions using distributed ledger technology (DLT) in central bank money. The initiative follows a two-track approach:
“The Eurosystem wants to support the use of innovative solutions in its market infrastructures while maintaining the safety and efficiency of TARGET Services. It will continue to further analyse new technologies and engage actively with public and private stakeholders,” the press release noted.
ECB Executive Board member Piero Cipollone said the central bank is embracing innovation while ensuring financial stability. He believes blockchain technology can improve the efficiency of European financial markets and create a more unified financial system.
The ECB also stated that this initiative supports its long-term goal of creating a unified European digital asset market. This aligns with the Governing Council’s vision of developing a digital capital markets union, as outlined in its March 7, 2024, statement.
This announcement comes just weeks after the ECB introduced its digital euro. Cipollone has been a strong advocate for a Eurozone-backed stablecoin, reportedly to counter U.S. President Donald Trump’s crypto-friendly policies, according to Reuters. In January, he also stressed the need for a digital euro, reflecting Europe’s increasing focus on blockchain adoption.
The digital asset industry has seen rapid growth in 2025, fueled by the election of pro-crypto President Donald Trump. Within just two months, there’s increasing belief that blockchain technology will be key in the evolving financial sector. As a result, the European Central Bank is now considering creating its own blockchain-based payment system.
While the world debates the role of crypto, the ECB is quietly laying the foundation for a new era of digital finance.
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