ECB’s Schnabel Says Central Bank Money ‘Must Go Onchain’

European Central Bank Executive Board member Isabel Schnabel told participants at the Jackson Hole Economic Policy Symposium that central bank reserves remain the ultimate settlement asset, and that stablecoins cannot expand liquidity rapidly during financial stress.

Tokenising Central Bank Money

Schnabel said the solution lies in tokenisation, which can make transactions faster, safer and programmable, but only if the safest asset – central bank money – lives on the same blockchain rails as other tokenised assets.

Project Pontes

Project Pontes is the ECB’s near‑term initiative, expected to launch in September 2026. It will connect the existing TARGET Services payment infrastructure with distributed‑ledger platforms operated by market participants. Over time, Pontes aims to provide settlement finality on a Eurosystem‑run DLT platform, include smart‑contract functionality and support 24/7 operation.

Project Appia – The Long‑Term Blueprint

Project Appia will develop the longer‑term architecture, technical standards and legal framework for a European tokenised‑asset market, with a full blueprint targeted for 2028. Trials have already processed about €1.6 billion across 64 participants in nine jurisdictions, and European issuers have placed nearly €4 billion in DLT‑based instruments since 2021. Since March 2026 the ECB also accepts DLT‑based assets as collateral for its credit operations.

Implications for the Wider Crypto Market

While the ECB’s moves do not directly affect Bitcoin prices, they signal that a major G7 central bank is prepared to settle its own money onchain, adding legitimacy to blockchain infrastructure that underpins tokenised finance.