365Crypto
Europe does move slow, but it is finally moving. The European Central Bank (ECB) is moving forward with plans to develop a blockchain-basedpayment system, which could pave the way for a digital euro. The initiative aims to modernize financial transactions across the eurozone and enhance efficiency.
The project will roll out in two phases:
- Phase One – The ECB will integrate blockchain-based payments with TARGET, the existing real-time gross settlement system used for transactions between European financial institutions.
- Phase Two – The ECB will explore a fully integrated long-term solution for settling transactions in central bank money on a blockchain.
A Step Toward a Digital Euro
A digital euro has been in development since 2020, with ECB officials emphasizing its potential to:
- Enhance the eurozone’s financial infrastructure
- Provide secure, fast, and seamless digital payments
- Reduce reliance on non-European payment service providers
Executive Board Member Piero Cipollone highlighted that this move contributes to “a more harmonized and integrated European financial ecosystem.”
Regulatory Push & Global Competition
The ECB’s digital currency push comes amid global debates on central bank digital currencies (CBDCs). While the United States has banned CBDC development, the European Union is doubling down on its efforts. ECB officials argue that a digital euro is essential for competing with stablecoins and private-sector digital currencies.
ECB President Christine Lagarde recently dismissed Bitcoin as a reserve asset, emphasizing that central banks need secure and stable digital alternatives.
The timeline for full implementation of the ECB’s blockchain-based payment system will be announced in the coming months.
