ECB To Explore Blockchain Technology for Central Bank Money Transactions
The European Central Bank (ECB) is exploring blockchain technology to improve the way central bank currency transactions are processed. This bold step could help increase blockchain and cryptocurrency adoption around the world and modernize payment systems.
Two track methods –
The ECB is Press release The Council of the European Central Bank (ECB) decided to expand its initiative to address transactions recorded on distributed ledger technology (DLT) in central bank currencies. The plan will follow a two-track approach.
First, the European system will soon create a safe and effective platform for central bank currency transactions and connect it with target services. A detailed schedule will be announced later. Second, the European system will explore longer-term, comprehensive solutions for DLT-based transactions, including international operations, etc.
“The European System wants to support the use of innovative solutions in its market infrastructure while maintaining the security and efficiency of targeted services. It will continue to further analyze new technologies and actively engage with public and private stakeholders,” the press release noted.
ECB embraces innovation
Piero Cipollone, a member of the ECB’s Executive Committee, commented that the ECB embraces innovation while ensuring security and stability. He believes that this innovation will improve the efficiency of European financial markets. He stressed that their approach will focus on helping the European system create a more unified and integrated European financial ecosystem.
According to the bank’s view, the initiative will help create a unified European digital asset market and support the Council’s goal of promoting the union of the digital capital market in a statement dated March 7, 2024.
Digital Euro
Interestingly, the announcement comes just weeks after the central bank introduced the digital euro. Piero Cipollone urged Eurozone Banks to oppose the crypto plan with U.S. President Donald Trump, Reuters reported. Additionally, in January, Cipollone said Europe needed a digital euro. This development underscores the efforts to integrate blockchain technology into the operations of the European Central Bank.
The digital asset industry grew rapidly in 2025, driven by the pro-Claytop President Donald Trump election. In just two months, people have become increasingly convinced that blockchain technology will be the key to the ever-evolving financial field. As a result, the European Central Bank is now considering creating its own blockchain-based payment system.
