A very important member of the European Central Bank (ECB) has stated that there should be a “European ledger.” All digital assets and funds in Europe would be stored on a single blockchain platform. This would make things easier for everyone. The project’s goal is to make the continent’s financial markets get along better and work better.
Piero Cipollone, a member of the ECB’s executive board, talked about the problems in Europe’s capital markets, which are often broken up and follow different rules. He said that a union of digital financial markets could be a good way to make things better.
Another 22% of banks in the European Union are already using distributed ledger technology (DLT), and more than 60% are looking into it or giving it a try. He did say, though, that DLT does not always lead to integration, even though it does make it easier to do so. There are different amounts of cash because different countries’ legal systems don’t work with each other. This makes the financial world even more crazy.
DLT is mostly used for releasing assets right now. But if it were made bigger so that conversation, payment, and custody could all happen on the same site, it might help keep things running and keep costs down. To keep things in balance, Cipollone said it was important to keep central bank money. This is especially true now that tokens and DLT are becoming more important in the capital market.
Many groups, like the Bank for International Settlements and well-known banks like SWIFT and JPMorgan, are becoming more interested in a unified ledger. This is a place where cash and assets can live together. For certain uses, Cipollone did say that this uniform way might make it easier to come up with new ideas, but it might also make it harder to keep things safe and work together. He said that the adaptability of different DLT systems might be better for regular banks.
These problems are still being talked about at the ECB, which is also looking into how to use central bank money in DLT deals. Cipollone said that relying on the current methods for connectivity could lead to problems in the long run.
Setting a record in Europe could be a big step forward for the financial markets in that area. It would make their work together better and faster, and it would also fix some issues that are happening in the world of digital goods right now.
