Central Bank Digital Currency Proposed for Tokenized Transactions, 2026/03/24 14:05:36

Piero Cipollone, a member of the executive board of the European Central Bank (ECB), stated that an open settlement system with its own central bank digital currency (CBDC) is essential for transactions involving tokenized payments in Europe.

Cipollone referred to the digital euro as a “settlement anchor” for tokenized securities and deposits, as well as stablecoins. He explained that if a seller of a tokenized security receives payment in volatile assets, such as tokens, they risk incurring losses. In his view, only a CBDC can safeguard against sharp price fluctuations of assets and issues related to the solvency of issuers.

The ECB board member believes that Europe requires clearer and more comprehensible regulations regarding the tokenization of assets. However, mere legislative changes are insufficient; effective coordination between government entities and private enterprises is necessary to collaboratively establish transparent conditions for the advancement of tokenized transactions.

Currently, the financial regulator is developing the Pontes project—a system intended to integrate distributed ledger technology (DLT) platforms with the ECB’s payment infrastructure and the central banks of the Eurozone. This will enable market participants to settle transactions for tokenized assets using central bank digital currencies. The launch of Pontes is scheduled for the third quarter of 2026.

The second, long-term initiative is called Appia. Its goal is to facilitate the seamless movement of tokenized assets across different blockchain platforms by utilizing common data formats and compatible smart contract standards. CBDCs are also expected to be used in these transactions.

Last year, Cipollone assured that the digital euro would not replace traditional money but would serve as a complementary payment method. The banking official believes that the digital euro will help maintain Europe’s financial sovereignty.