Isabel Schnabel, an executive board member of the European Central Bank, has said that central banks should bring central bank money onto blockchain networks to modernize the execution of monetary policy. Her remarks were reported by Bloomberg and picked up by ChainCatcher. Schnabel argued that moving central bank currency 'on-chain' would not only maintain money's role as the bedrock of settlement, but also enable central banks to use the programmable features of distributed ledger technology. That programmability, she explained, could be applied to monetary policy implementation, collateral management and liquidity provision. In her view, these changes would ultimately contribute to financial stability. The story was published as a newsflash on ChainCatcher, citing Bloomberg. The original report contains no additional information about possible timelines, technical design, or next steps.
Isabel Schnabel, a member of the European Central Bank's executive board, has argued that central banks should move central bank money onto blockchain, according to a Bloomberg report carried by ChainCatcher. The aim, she said, is to modernize the execution of monetary policy.
Schnabel explained that putting central bank money 'on-chain' would preserve its role as the settlement bedrock. It would also allow the central bank to harness the programmable nature of distributed ledger technology, modernizing how monetary policy is implemented, how collateral is managed, and how liquidity is supplied. These improvements, in her view, would contribute to financial stability.
The original report, published by ChainCatcher, cites Bloomberg and offers no further specifics.
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