ECB Executive Calls for Central Bank Money on Blockchain

During the Jackson Hole Economic Policy Symposium on August 28, Isabel Schnabel, who serves on the Executive Board of the European Central Bank, suggested that central banks should issue currency via blockchain networks. She proposed three methods: creating tokenized reserves on programmable ledgers, integrating existing systems with distributed ledger technology, and allowing private firms to manage tokenization while supporting direct issuance for atomic settlement benefits. The ECB is advancing with projects Pontes, launching in September 2026 to connect DLT platforms, and Appia, aimed at establishing Europe’s tokenized market framework by 2028. They've conducted interoperability tests involving €1.6 billion, and since 2021, nearly €4 billion in blockchain instruments have been released. Schnabel also warned about stablecoins, emphasizing the benefits of central bank money.