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European Central Bank Explores Blockchain for Central Bank Money Transactions

2 mins mins
European Central Bank Explores Blockchain for Central Bank Money Transactions

Key Points:

  • The European Central Bank is developing a two-phase plan to integrate blockchain technology into central bank money transactions.
  • The ECB’s initiative follows ongoing discussions about a digital euro amid global momentum where countries advance CBDCs.

The European Central Bank (ECB) is taking significant steps toward integrating blockchain technology into its financial infrastructure.

Read more: ECB Rejects Bitcoin Reserves, Citing Security and Liquidity Risks

European Central Bank Boosts Blockchain Applications to Modernize Payments

In a press release, the European Central Bank’s Governing Council announced a two-track approach to utilizing distributed ledger technology (DLT) for financial settlements.

The first phase involves developing a secure and efficient settlement platform that will connect with the existing TARGET Services. A timeline for its implementation is expected to be released in due course.

The second phase will focus on a long-term strategy to facilitate DLT-based transactions, particularly in international financial operations such as foreign exchange settlements. The initiative is expected to bolster the European digital asset market by providing a structured and regulated framework for blockchain-based transactions.

Global CBDC Development Expands Rapidly

The ECB’s announcement follows its recent push for a digital euro, a proposal that has been under discussion since the European Commission introduced legislation in June 2023. However, progress has been slow, with some lawmakers and financial institutions expressing skepticism.

The global momentum toward central bank digital currencies (CBDCs) continues to grow. Countries such as Nigeria, Jamaica, and the Bahamas have already launched their own CBDCs, while over 40 others, including Russia, China, Australia, and Brazil, are conducting pilot programs, according to the Atlantic Council.

Since the start of 2025, the digital asset industry has experienced rapid growth, partly driven by political developments in the United States. With the election of pro-crypto President Donald Trump, the U.S. has signalled a stronger embrace of digital assets, a stance that has influenced global financial markets and regulatory discussions.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Avatar of John Kojo Kumi

John Kojo Kumi

20 February 2025, 17:02:00 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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