The European Central Bank (ECB) is planning to modernize its payment infrastructure using blockchain technology.
This new initiative could lead to the creation of a central bank digital currency (CBDC) for the eurozone. Announced in a February 20 statement by the ECB, it will roll out in two phases.
First, the bank plans to develop a system that allows settlements in central bank money through a connection with the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET). TARGET ensures smooth transactions of cash, securities, and collateral across the eurozone.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
Crypto Mining Explained: How to Earn From Mining Bitcoin? (Animated)
Additionally, the ECB will explore a long-term solution for settling transactions using blockchain technology. This step would create a more advanced system for processing payments and could lay the groundwork for a future digital euro.
Executive Board member Piero Cipollone said in the statement:
This is an important contribution to enhancing European financial market efficiency through innovation.
The ECB began looking into a digital euro in 2021, focusing on how it could be designed and distributed. In 2023, the bank set clear priorities for the first phase of its digital currency project.
As development continues, the ECB will refine its blockchain-based payment system while working with public and private stakeholders.
Meanwhile, Hong Kong’s Securities and Futures Commission (SFC) recently introduced the ASPIRe plan. What does the plan entail? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
