Market Analysis Report (27 Sep 2022) PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Market Analysis Report (27 Sep 2022)

The European Central Bank (ECB) has revealed that it is analyzing options to integrate decentralized ledger technology (DLT) into existing payment settlement systems during a speech from Fabio Panetta, an ECB executive board member.

The central banker suggested the ECB will not be the first in the space, however, and will monitor how widely stablecoins and central bank digital currencies are adopted. If they’re widely adopted, the ECB will look at creating bridges between European payments systems and its own digital euro.

Panetta noted that bankers see the most potential for stablecoins in large daily wholesale transactions between banks across borders, over existing complications of cross-border and cross-currency payments. Major blockchain networks existing outside of Europe, Panetta said, raises “concerns about strategic autonomy.”

The central banker said that “despite the uncertainties surrounding DLT’s potential, we want to be prepared for a scenario where market players adopt DLT for wholesale payments and securities settlement.” Per his words, the ECB must “ensure that, in such a scenario, central bank money would still retain its role as the settlement asset for wholesale transactions.”

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