ECB plans to buy tokenized bonds with its own funds
The European Central Bank rolled out a new system to link its payment system to blockchain-based financial markets.
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The European Central Bank rolled out a new system to link its payment system to blockchain-based financial markets.
Although the ECB holds no formal licensing authority under MiCA, high-level intervention led Greece to stall an application that regulators had previously deemed complete, the Journal said.
The 12-month test will put a beta version of the central bank currency through online, mobile, in-store and peer-to-peer payments.
The Appia roadmap for a euro-based tokenized financial system is part of the European Union’s push to reduce reliance on foreign financial infrastructure.
The issuance was the company’s first digital bond with fully automated settlement, building on last year’s issuance on the Polygon network.
The 30 million-euro ($32.5 million) bond was settled through the Bank of France’s tokenized cash system and coordinated by BNP Paribas.
Global lenders and asset managers are increasingly exploring blockchain tech to issue and transfer traditional financial instruments, also known as tokenization of real-world assets.
ECB Director General Ulrich Bindseil and advisor Jürgen Schaaf are definitely against bitcoin, but their reasons don’t make a lot of sense.
“Bitcoin has failed on the promise to be a global decentralised digital currency and is still hardly used for legitimate transfers. The latest approval of an ETF doesn’t change the fact that Bitcoin is not suitable as means of payment or as an investment,” two ECB officials wrote in a blog post.
The U.S. SEC’s approval of multiple spot ETFs and the billions of dollars that have poured in since doesn’t make Bitcoin a good investment or a better means of payment, the central bankers said in a blog post.