The European Central Bank (ECB) is considering implementing a European ledger to increase efficiency and promote cooperation between member states.

The European Central Bank (ECB) is exploring the idea of ​​implementing a “common ledger” for the entire eurozone, based on blockchain technology. This platform would bring together digital assets and currencies of European Union (EU) member states, aiming to improve synchronization and increase efficiency in capital markets.

The idea was introduced by Piero Cipollone, a member of the ECB’s executive board, at a conference organized by the ECB on October 7. Cipollone said that traditional capital markets in Europe are fragmented due to differences in regulations. However, this is also an opportunity to create a common platform for digital assets, which he called a “digital capital markets union.” Currently, more than 60% of banks in the region are exploring or testing distributed ledger technology (DLT), and 22% of them have already deployed real applications.

According to the ECB, expanding the use of DLT to include activities such as negotiation, settlement, and custody on a single platform could help reduce costs while allowing for continuous, 24/7 operations. Investors would also benefit from the proliferation of DLT, not only commercial banks but also central banks. The ECB stressed the importance of ensuring that central bank money remains at the core of the payment system, even in a digital capital environment based on tokens and DLT.

The idea of ​​a “unified ledger” – where cash and digital assets coexist on a single platform – has received support from the Bank for International Settlements (BIS) and several other central banks, and has attracted interest from major institutions such as SWIFT and JPMorgan. However, there are also concerns that the solution could stifle innovation, especially for narrow and specialized applications.

The ECB is still exploring DLT-based payments using central bank money, however, and acknowledges that relying on current solutions may not fully address the shortcomings in the long term. If successful, a unified European ledger could provide financial stability and promote deeper integration within the region.