according to the materials of the site - ETHNews
The European Central Bank is moving forward with plans to integrate blockchain technology into the core financial infrastructure of Europe.
By 2026, the ECB aims to facilitate central bank money settlements using distributed ledger technology (DLT), marking a significant step towards modernizing the payment and settlement system of the Eurosystem.
The initiative is being implemented alongside a long-term project for a digital euro for retail, which is still on track for a potential launch later this decade, pending legislative approval.
The ECB has approved a bilateral approach to integrating DLT into wholesale settlements.
The first path, known as Pontes, is a short-term pilot project scheduled for launch at the end of the third quarter of 2026. Pontes will focus on connecting DLT-based platforms with the existing TARGET Services system, enabling blockchain transactions directly in central bank money.
The second track, Appia, is designed as a long-term solution with a target date of 2028. This project will explore deeper integration of DLT into capital markets, potentially changing the ways securities and other financial instruments are issued, traded, and settled across Europe.
Together, these two projects reflect a phased strategy: first, immediate functional compatibility, and then structural transformation.
Meanwhile, the ECB's initiative for a retail digital euro remains at the technical preparation stage. The current roadmap points to a possible first issuance in 2029, provided that the necessary EU legislation is adopted by 2026.
Before this phase, the ECB expects the pilot event and initial transactions to begin as early as mid-2027. These early stages will test functionality and resilience rather than represent a full public rollout.
The staggering timeline underscores the ECB's cautious approach, separating wholesale innovations from retail deployment while ensuring compliance across both directions.
The central motivation behind these initiatives is European strategic autonomy. ECB representatives have repeatedly emphasized the need to reduce dependence on non-European payment providers such as Visa and Mastercard, as well as on foreign stablecoins promoted by other jurisdictions.
By anchoring digital payments and settlements in central bank money, the ECB aims to preserve monetary sovereignty and ensure that the euro remains a key reference point in an increasingly digital financial system.
If successful, the ECB's plans could have a wide effect. It is expected that blockchain-based central bank money settlements will support financial innovation, lower barriers for new entrants, and enhance competition among payment service providers.
In a broader sense, the strategy aims to maintain the euro's role as a monetary anchor as digital assets and new payment technologies reshape global finance. Rather than reacting to developments in the private sector, the ECB positions the Eurosystem as a standard-setting entity within its infrastructure.
The coming years will determine whether this bilateral approach can balance innovation, stability, and sovereignty as Europe's financial system enters the next phase.
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