The European Central Bank (ECB) said it was looking to generate a way of repairing transactions distributed-ledger (DLT) transactions with fiat currency because it expanded its work on the main feature that subject to blockchain and cryptocurrencies.
The bank Plan a two -stage approach With the use of technology, which is a decentralized database that preserves and has been updated independently of individual participants in a large network. First it will develop a system that is linked to the existing target system. The target ensures “the free flow of cash, Security and collaterals throughout Europe“It said.
“This is an important contribution to enhancing the European financial market efficiency through change,” Executive Board member Piero Cipollone, who oversees the initiative, said in a statement on Thursday.
The bank will also seek for a long-term, more integrated way of repairing DLT-based transfers in Fiat Money, which will include foreign exchange settlement.
ECB is exploring Technology of digital currency Since 2023. The initiative will build up in the exploratory work that invited stakeholders to the financial market To explore “wholesale financial transactions recorded on the shared Ledger’s shared technology platforms to be repaired with central bank’s currency.”
A timeline on bank plans will make it public later.
