The European Central Bank (ECB) has announced plans to create a blockchain-based payment system aimed at simplifying settlements between central banks. The project will be implemented in two phases: first, the development of a blockchain platform integrated with the existing TARGET system, and then the deployment of a more comprehensive solution covering foreign exchange market operations.
ECB Executive Board member Piero Cipollone stated that this initiative will be a significant contribution to improving the efficiency of the European financial market through innovation. The timeline for the project’s implementation has not yet been specified.
Other central banks are taking similar steps. For instance, the Swiss National Bank has been testing a wholesale digital currency for settling digital bond transactions since December 2023 and has extended the pilot project at least until 2026.
These initiatives reflect a global trend towards exploring and adopting central bank digital currencies (CBDCs) to enhance financial system efficiency and security.
