The European Central Bank (ECB) has approved a two-track scheme to dispose of the Laser Technology (DLT) transaction distributed using Central Bank Money, which can pave the way for modernizing Europe’s financial system.
The first track will focus on a short-term solution by connecting the dubbed pontess, blockchain-based DLT platforms with target services, a suit of financial services developed and operated by eurozones designed to facilitate the flow of payment and securities within the eurozone.
A pilot for Pontess is expected to be launched by the end of the third quarter of 2026, ECB Said Tuesday This pilot will use insight from the searching DLT tests of ECB in 2024, including more than 50 experiments and 64 participants, to test an integrated settlement system with central bank money.
ECB wrote, “This decision is in line with the commitment of Eurosistum to support innovation without compromising safety and efficiency in the infrastructure of the financial market.”
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Second track takes long -term approach
The second track, called Epia, takes a long -term approach, aiming “to develop an integrated ecosystem in Europe that facilitates safe and efficient operations globally.”
Appia will continue to study ECB in wholesale bank settlements while working closely with public and private partners.
The eurosistum will also establish a market contact group for both Ponts and Epia to maintain interactions with stakeholders of the industry and to collect feedback. A call will be published soon for manifestations of interest to join the Pontess Group.
The scheme comes in the form of central banks worldwide how blockchain can streamline settlements while maintaining control of money flow.
In 2023, the Bank of England experiment, held through the BIS London Innovation Hub, was successfully tested using DLT to run the interbank transaction on a large scale. This demonstrated a prototype that can speed up the cost of real -time gross settlement (RTGS) systems by combining them with other financial infrastructure and leaders.
Cointelegraph reached ECB for comments, but did not receive a reaction by publication.
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DLT tests reveal the demand for central bank’s money
ECB too Published A report that describes the results of its recent DLT search. The report confirmed the demand for a strong market to dispose of the wealth of the central bank, with a 1.6 billion euro ($ 1.88 billion) to settle 64 participants across Europe with a 1.6 billion euros ($ 1.88 billion).
Conclusions suggest that DLT can reduce the “fragmentation, complexity and technical inefficiencies” in capital markets by enabling atoms, programming settlements.
However, it indicated the requirement of an interoperability link as soon as possible as a difference with standardization, harmonious legal framework, and “a difference with target services.”
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