The European Central Bank (ECB) is moving forward with the creation of a wholesale central bank digital currency (CBDC) payments system designed to facilitate interbank transactions, it announced Feb. 20.
Implementation of the system will occur in two phases: initially the CBDC settlement platform will be developed, followed by further integration with existing ECB systems, such as foreign exchange markets.
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Piero Cipollone, the ECB Executive Board member leading the wholesale CBDC initiative, said that this program aims to foster "a more harmonized and integrated European financial ecosystem."
Since 2020, the ECB has been exploring various aspects of CBDCs, including a consumer-oriented retail digital euro and cross-border wholesale settlements between central banks.