In a welcome address at a Deutsche Bundesbank event for central bank representatives attending Sibos, European Central Bank Executive Board member Piero Cipollone set out how the Eurosystem is responding to the digitalisation of finance by keeping central bank money at the technological frontier across retail, wholesale and cross-border payments. For retail payments, the speech reiterated work on a digital euro alongside efforts to make euro banknotes safer, more durable and more accessible, including a redesign and calls to strengthen cash’s legal tender status to support widespread acceptance. For wholesale markets, it highlighted the current role of central bank money in infrastructure such as T2, which settles over 90% of the value of large payments, TARGET2-Securities and the newly live Eurosystem Collateral Management System, alongside preparation for a move to T+1 settlement by 2027. Against growing experimentation with tokenised securities and distributed ledger technology (DLT), the Eurosystem has tested wholesale settlement in central bank money using DLT, launched Project Pontes to bridge DLT platforms with TARGET settlement services, and launched Project Appia to explore longer-term models for more integrated European capital markets using DLT. Next steps flagged include a first Project Pontes release in a year enabling tokenised transactions to settle in central bank money, continued work to make digital assets deployable as collateral for monetary policy operations, and further cross-border work through initiatives such as BIS-led Project Agora and potential interlinking of fast payment systems. The Eurosystem is exploring links between TARGET Instant Payment Settlement (TIPS) and other systems, including via Project Nexus and India’s Unified Payments Interface, and is starting work with the Swiss National Bank to test linking TIPS with the Swiss Interbank Clearing Instant Payments system through 2026.
European Central Bank 2025-09-30
European Central Bank sets out digital euro and DLT settlement roadmap with Project Pontes first release available in a year
ECB Executive Board member Piero Cipollone discussed the Eurosystem's digital finance response at a Deutsche Bundesbank event, highlighting central bank money advancements in retail, wholesale, and cross-border payments. Initiatives include a digital euro, euro banknote enhancements, and DLT integration in wholesale markets via projects like Pontes and Appia. Future steps involve tokenised transactions in central bank money, digital assets as collateral, and exploring cross-border payment system linkages.