Thus Piero Cipollone, member of the Executive Committee of the ECB, in his speech at the 30th annual Congress of financial market operators organized by Assiom Forex
“The rapid growth of digital technologies has attracted broad market interest and stimulated experimentation. DLT-based technology is promising as it could increase the efficiency of operations for some of the traditional uses and enable new use cases” but “Caution is needed so that such innovations do not undermine the stabilizing role of central bank money in the settlement of transactions between financial institutions.” This is what Piero Cipollone, member of the Executive Committee of the ECB, said in his speech at the 30th annual Congress of financial market operators organized by Assiom Forex.
“Therefore – he indicated – central banks must be ready for a possible wide adoption of new technologies and keep pace with their evolution, as they have done in the past. They will thus contribute to combining innovation with financial stability, promoting modernization To this end, it is necessary for the public and private sectors to collaborate to define the future ecosystem of wholesale settlement in central bank money. This collaboration – he further said – should exploit the advantages of new technologies, while ensuring that settlement operations remain safe and efficient”, remarked Cipollone, explaining how “in keeping pace with a rapidly evolving technological frontier, it must be recognized that there are still many aspects to be explored”.
The Eurosystem, concluded Cipollone, “is doing its part by preparing settlement solutions in central bank money for exploratory purposes and conducting further analyzes aimed at defining its vision for the future ecosystem of wholesale financial operations. But it is up to finally demonstrate to the market the added value of DLT infrastructures for wholesale uses, as well as establish and implement the necessary standards”.
“To maintain its role”, the euro – he continues – “must always place itself on the technological frontier, and maintain its attractiveness as a means of payment”. “There is no reason why central banks should be the only actors not to keep pace with digital transformation. Indeed, they should be at the forefront – he added – acting as an anchor of stability to encourage financial innovation and a path towards modernization. The Eurosystem is working to maintain this role. Examples of this are retail payments and the work we are conducting on the digital euro to allow everyone to use central bank money in digital form and beyond like cash,” Cipollone explained.