The European Central Bank (ECB) is taking significant steps to create a payments system based on blockchain technology, with potential plans to issue a central bank digital currency (CBDC) known as the digital euro. This initiative will unfold in two phases: first, the ECB aims to develop a payments platform linked to the existing Trans-European Automated Real-Time Gross Settlement Express Transfer system (TARGET), facilitating seamless transactions across the eurozone. In the second phase, the ECB will investigate a more integrated blockchain solution for settlement of central bank money-denominated transactions. According to Executive Board member Piero Cipollone, this innovation will enhance the efficiency of European financial markets. The initiative aligns with the ECB’s broader goal of establishing a single capital market in Europe, reducing reliance on non-European payment service providers. The ECB's plans began in 2021 and are now progressing with stakeholder engagement to ensure the new system meets European needs; a timeline for the rollout will be announced later.

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