European Central Bank Moves Closer to Blockchain-Based Payments System

In Brief:

ECB launches a two-phase plan for blockchain-powered settlements.

Potential foundation for a future digital euro (CBDC).

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The European Central Bank (ECB) has announced a major initiative to develop a blockchain-based payments infrastructure, marking a step toward a digital euro. The first phase will focus on integrating a blockchain settlement system with TARGET, the existing eurozone payment network. In the second phase, the ECB will explore a long-term solution for blockchain-based transactions.

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This move could strengthen Europe’s financial autonomy and enhance cross-border digital payments, reducing reliance on non-European service providers. The ECB will continue consulting public and private stakeholders before finalizing the timeline for implementation.

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