ECB will establish a dedicated unit to help Eurosystem in its study. The post Europe’s Central Bank to Explore DLT Platforms for Settlement appeared first on Tokenist.
ECB to Set Up a Dedicated Entity to Support Wholesale CBDC Investigations
The Eurosystem, the collective of European Union (EU) member states that use the euro as the official currency, is exploring ways of “how wholesale financial transactions recorded on DLT platforms could be settled in central bank money,” the ECB wrote in the press release on Friday.
The move comes as the ECB doubles down on Eurosystem’s ongoing work in this space and looks to learn how different solutions can streamline the interaction between TARGET services and DLT platforms. TARGET services refer to a range of services developed by the Eurosystem that are settled in central bank money.
In addition, the ECB said it plans to establish a dedicated market contact group to aid Eurosystem in its exploratory studies. This new entity will offer “expert input and keep the Eurosystem abreast of advances in the use of DLT and other new technologies in wholesale financial markets,” the bank added in the announcement.
Digital Euro Investigation Phase to Conclude This Year
The ECB believes a digital euro could further stabilize the bloc’s payment and monetary system amid growing demand for reliable and secure electronic payment methods. ECB announced the 2-year investigation phase for this project in October 2021, which means that exploratory work is expected to conclude in October 2023.
Do you think the ECB will eventually launch retail and wholesale versions of a digital euro? Let us know in the comments below.