ECB Executive Board member Isabel Schnabel sets out the direction for central bank-managed money: on-chain reserves
Isabel Schnabel, a member of the Executive Board of the ECB, said at the Jackson Hole Economic Policy Symposium that central bank money must move on-chain. Schnabel stated that central bank reserves remain preferable to stablecoins as a final settlement asset, because only a central bank can rapidly expand liquidity during periods of financial stress.
The statement accompanies Project Pontes, which the ECB plans to launch in September 2026. The project will initially synchronise TARGET Services with DLT platforms operated by market participants. According to Schnabel, Pontes is designed to support in the future final settlement on a DLT platform operated by the Eurosystem, with smart contract functionality and, ultimately, 24-hour operations.
Project Appia will define the long-term architecture, technical standards and legal framework needed for a European market in tokenised assets. A full plan is expected by 2028.
According to Frankfurt, interoperability tests between DLT platforms and existing settlement infrastructure processed about €1.6 billion, with 64 participants across nine jurisdictions. Since March 2026, the ECB has also accepted DLT-based assets as collateral for its lending operations.
