(Sept 21): The European Central Bank on Monday began letting banks settle tokenised wholesale transactions in central-bank money while continuing efforts to develop a digital euro for consumers by the end of the decade.

The so-called Pontes project links blockchain markets with the euro area’s existing payment systems. It will eventually be replaced by a longer-term solution known as Appia, for which a blueprint should be ready in 2028.

The ECB wants to cut Europe’s reliance on US payment firms and limit the spread of dollar-pegged stablecoins championed by US President Donald Trump. Its wholesale digital currency is designed to complement the retail version, which is set for introduction in 2029.

The ECB reported significant interest in Pontes, saying in a statement that an initial group of market participants and DLT operators is ready to start using it immediately, with others committing to connecting in the months ahead.

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