ECB Aims to Elevate Banking Efficiency with Blockchain Technology

The European Central Bank (ECB) has announced plans to develop a system supported by blockchain technology for executing central bank monetary transactions. This initiative is anticipated to enhance the use of digital assets and promote innovative solutions within financial markets. The ECB stated that it would adopt a two-phase approach for transactions based on distributed ledger technology.

Technological Development and Security

In the first phase, the ECB aims to create a secure and efficient platform compatible with TARGET Services. The bank expressed that it would provide the necessary infrastructure to support transactions using central bank money, with a clear timeline set to be announced in the future.

The second phase will focus on more integrated and long-term solutions. This phase plans to evaluate not only domestic transactions but also international operations such as foreign currency exchanges. The ECB noted that digital assets could contribute to the creation of an integrated European market.

Pursuit of Integrated Long-Term Solutions

The bank emphasized its commitment to supporting blockchain technology while maintaining the security and efficiency of TARGET Services. Continuous communication with public and private sector stakeholders will be prioritized throughout this process.

“We embrace innovation without compromising security and stability. This approach will enhance the efficiency of financial markets. Our goal is to create a more cohesive and integrated European financial ecosystem.” – Piero Cipollone, ECB Board Member

The ECB highlighted that this initiative could represent a significant step in the realm of digital currency and innovative financial solutions. The aim is to evaluate new technologies and ensure their integration into international operations.

The use of blockchain in central bank monetary transactions is expected to improve efficiency and integration within the financial system. This development is seen as a contributing factor to the digital transformation process in European markets.