ECB launches Pontes to settle blockchain transactions in official euros
The European Central Bank just launched Pontes, a new service that links its payment system directly to blockchain-based financial markets.
Now, transactions on the blockchain can settle in official ECB euros instead of private stablecoins, a move that could make digital finance more efficient and less dependent on private alternatives.
Pontes runs business hours, banks onboard
Pontes runs on business days from 8am to 4pm. CET, with early users like Deutsche Bank and Santander already on board.
The ECB also plans to invest part of its €23 billion in own funds into blockchain-based securities, focusing on highly rated, euro-denominated debt issued by public institutions.
Other central banks are experimenting too: Switzerland is using digital currency for securities settlements, and the UK is testing out blockchain tech.
Plus, the ECB's own digital euro could arrive by 2029, aiming to give people more choices beyond US credit cards.