The European Central Bank (ECB) lays a new stone in the evolution of interbank payments in Central Bank Digital Mint (MNBC). In a recent announcement, she unveiled a project to allow the regulation of transactions in MNBC on Blockchain, in a secure and regulated framework.
The payments of the ECB soon on-chain?
The European Central Bank (ECB) has announced the expansion of its initiative aimed at Allow the regulations of blockchain transactions with digital central bank currencies (MNBC). This project is part of a 2 -phase strategy, with the objective, according to it, to promote innovation without compromising the stability and security of European financial infrastructure.
To begin with, The Eurosystem will develop and set up an interoperable platform with Target Services (the interbank settlement system used by the ECB and the Central Euro banks) in order to guarantee a safe and effective regulations of transactions based on blockchain. The precise calendar of this implementation will be communicated later.
Then the ECB will explore a long -term integrated solutionwhich will take into account the regulation of international transactions, in particular exchange operations.
🪙 What is a MNBC and how does it work?
We embrace innovation without compromising security and stability. This is a major contribution to improving the efficiency of European financial markets. Our approach is fully part of the goal of the Eurosystem to achieve a more harmonized and integrated European financial ecosystem.
The project is based on exploratory work carried out by the Eurosystem between May and November 2024, during which 64 market players, including central banks, financial institutions and blockchain platform operators, carried out more than 50 trials and experiments. Some tests involved real regulations in central bank currency, while others focused on transactions simulations.
Buy cryptos on etoro
Digital currencies, soon a necessity
This initiative is part of a broader dynamic already observed elsewhere in Europe. Like the Swiss National Bank, which in December 2023 launched a large MNBC pilot project allowing the payment of digital bonds, the ECB is actively exploring the potential of distributed registry technologies, or DLT – on which S ' Press the blockchain – to modernize financial infrastructure.
The Swiss project, initially limited in time, has recently been extended until 2026, testifying to an increasing interest in these solutions within central banks.
🗞️ The Czech Central Bank sees the creation of a Bitcoin Strategic Reserve as a means of “strengthening”
We still do not know on what type of blockchain or distributed register will work the ECB system. Piero Cipollone, who oversees the initiative, wrote in 2022 about MNBC and as governor of the Bank of Italy: “ Algorand provides one of the most advanced blockchain solutions for financial services ».
Indeed, the Bank of Italy had tested a synchronization model between a blockchain and the TIPS platform (the EUROSYSTEM Instant Payment System) with Algorand, which had also aroused international interest, especially with The Bank of England. However, everything remains to be determined, and the possibility of a private blockchain is not to be excluded.
Trade Republic: buy cryptos and actions in 5 minutes
Source: ECB
The crypto newsletter n ° 1 🍞
Receive a summary of crypto news every day by email 👌
Certain links present in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner gives us a commission.
Investments in cryptocurrencies are risky. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital
As an editor -in -chief of cryptoast, I agree to make the world of cryptocurrencies and the web3 accessible to all. Expert in the identification of the most relevant news, I attach great importance to the quality of the articles produced by cryptoast. I make sure that our readers benefit from reliable information, verified and presented clearly and pleasant to read. My goal is to share quality knowledge to better inform and educate our audience about this constantly evolving universe.
MAXIMILIEN PRUDE
1363 articles
