The European Central Bank is looking into how to settle distributed ledger technology-based transactions in fiat money.
The ECB is planning a two-track approach that will first see it develop and implement a platform for such settlements in central bank money through an interoperability link with the existing Target Services.
Second, the Eurosystem will look into a more integrated, long-term solution for settling DLT-based transactions in central bank money, that also include international operations, such as foreign exchange settlement.
ECB Executive Board member Piero Cipollone says: "We are embracing innovation without compromising on safety and stability.
"This is an important contribution to enhancing European financial market efficiency through innovation. Our approach will pay due attention to the Eurosystem’s goal of achieving a more harmonised and integrated European financial ecosystem."