ECB Outlines Three Models for Putting Central Bank Money Onchain

central bank money onchain — The European Central Bank (ECB) has detailed three potential models for settling wholesale financial transactions using central bank money on a blockchain, as part of its exploratory work on a digital settlement infrastructure.

The central bank’s report, published as part of its ‘New Technologies for Wholesale Settlement’ initiative, examines how tokenized assets could be settled. The first model involves a centralized ledger operated by the ECB itself. The second proposes a decentralized financial market infrastructure where the central bank provides settlement tokens. The third model envisages interlinking a central bank ledger with private platforms.

The ECB emphasized that the work is exploratory and does not signal a decision to launch any new system. The analysis aims to understand the operational and legal implications of each approach for settling tokenized assets, which are seen as a growing trend in traditional finance.

This investigation into on-chain wholesale central bank money is separate from the digital euro project, which is focused on a retail CBDC for general public use.