ECB plans blockchain euro issuance, says stablecoins cannot replace central bank money

European Central Bank Executive Board member Isabel Schnabel said at the Jackson Hole symposium that the ECB wants to issue euros directly on a blockchain and use them as a settlement asset for tokenized markets. She said only central banks can create this kind of asset. Stablecoins, in her view, should complement central bank money rather than replace it, because they cannot expand supply in a crisis the way a central bank can. Schnabel also said the Pontes project is scheduled to go live next month. The project is designed to connect the euro area’s TARGET settlement backbone with market blockchain platforms, enabling atomic settlement in central bank money. In earlier testing, 64 institutions across nine jurisdictions settled about €1.6 billion through nearly 58 use cases. She also cited market data showing about $304 billion in USD-pegged stablecoins in circulation, while euro-pegged tokens are still below $1 billion. Schnabel warned that if private tokens dominate settlement, Europe will end up using dollars for settlement.