ECB: Cipollone says delaying tokenisation poses a risk to monetary sovereignty

Comprehensive plan for a fully integrated ecosystem by 2028

"If the Eurosystem were to delay in offering tokenised central bank money, we would run the risk of this ecosystem developing outside Europe or adopting settlement methods not denominated in euros. Our monetary sovereignty would be compromised.” This was stated by Piero Cipollone, a member of the ECB’s Executive Board, at a conference at La Sapienza University marking the 80th anniversary of the Republic. “A new digital ecosystem is therefore emerging, one that has the potential to transform finance as we know it today,” he said. “But this ecosystem needs settlement methods that can be used on DLT in order to develop.”

"Central bank money, whether in its current form or in tokenised form, represents a risk-free settlement asset, which guarantees the finality of payments and strengthens confidence in market infrastructures. These characteristics will contribute to the growth of the tokenised ecosystem and its integration,” said Cipollone, explaining that the Eurosystem is taking “a gradual approach to this issue, with the aim of enabling Europe to reap the benefits of tokenisation and promoting the creation of an integrated European market for digital assets”: “We are in the process of connecting commercial DLT platforms to our TARGET services, so as to enable the settlement of transactions in tokenised assets in central bank money. This service will be available in the coming months, as part of our Pontes project.” “A comprehensive plan” on the functioning of a fully integrated tokenised ecosystem will be presented “in 2028”, concluded Cipollone, referring to the Appia programme (Asset Protocol for Provable Interoperability and Asset Settlement).

fon