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European Central Bank to Build DLT-Based Settlement Infrastructure
The European Central Bank (ECB) has announced its intention to build a settlement infrastructure based on distributed ledger technology (DLT). This move comes as no surprise, considering the growing trend of central banks exploring digital and decentralized technologies. According to an official press release, the ECB’s two-phase plan will reshape financial markets by bridging traditional banking with blockchain technology.
As part of the initiative, the bank aims to develop a system that connects DLT platforms with its existing TARGET services. The latter facilitates seamless transactions across Europe, ensuring the efficient flow of cash, securities, and collateral. By linking DLT transactions to this established framework, the ECB seeks to enhance efficiency and security in financial operations.
The second phase of the plan focuses on the development of a comprehensive system for settling DLT-based transactions directly in fiat currency. This integrated framework will cater to various financial activities, including foreign exchange settlements. The primary objective is to establish a cohesive structure that supports the evolving landscape of digital finance while preserving the stability and reliability of traditional monetary systems.
The implications of this development are far-reaching and may significantly impact the cryptocurrency market. As central banks continue to adopt DLT, it’s possible that this trend could influence regulatory landscapes surrounding leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Source: http://www.crypto-news-flash.com
