The European Central Bank (ECB) The Government Council has approved research efforts that will use central bank money to run distributed headbox technology (Dlt) Transactions when the body appears to make its payment systems more efficient.
A short -term approach is called “pontes” which will connect DLT platforms with eurosystem target services to ensure the flow of cash and securities throughout Europe. A pilot will be launched in the third quarter of 2026. A more long-term solution called “Appia” will facilitate global operations and analyze DLT-based solutions, the post said Tuesday.
“The decision is in line with the eurosystem’s obligation to support innovation without compromising on security and efficiency in infrastructures in the financial market,” the release said.
The ECB has investigated how to use DLT technology to increase the payment settlement, something that central banks around the world have looked at. It performed investigative work with wholesale -central bank’s money execution between May and November 2024. A report on the results of this work was also published on Tuesday, identifying DLT with benefits such as reducing costs and counteracting credit and settlement risks.
Read more: ECB is targeted at October to complete Digital Euro Preparation Phase
