ECB Executive Board Member Proposes Central Banks Adopt Distributed Ledger Technology
Isabel Schnabel argues that bringing central bank money on-chain is essential for modernizing financial settlement and monetary policy implementation.
By Orion Desk
ECB Executive Board member Isabel Schnabel has signaled that central banks should embrace distributed ledger technology by issuing central bank money natively on-chain. She argues that this shift would provide the safe settlement assets necessary for tokenized finance while allowing for more efficient, automated collateral management and liquidity provision.
The speech outlines the benefits of tokenization in wholesale finance, emphasizing that central bank-issued digital assets remain superior to private stablecoins for systemic stability. Market participants should note that the central bank is actively exploring how to integrate its reserves into programmable platforms to reduce fragmentation in European financial infrastructure.
Originally published by European Central Bank
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