The European Central Bank (ECB) Governing Council has approved new research initiatives to utilize central bank money for settling distributed ledger technology (DLT) transactions, aiming to enhance the efficiency of its payment systems. This decision aligns with the Eurosystem's commitment to innovation while maintaining safety and efficiency in financial market infrastructures. A short-term project named 'Pontes' will connect DLT platforms with Eurosystem TARGET services to facilitate cash and securities flow across Europe, with a pilot expected by Q3 2026. A longer-term initiative called 'Appia' will explore global DLT solutions. Previously, the ECB conducted exploratory work on DLT for wholesale central bank money settlements from May to November 2024, highlighting benefits like cost reduction and lessening credit and settlement risks. This effort signals a significant step towards modernizing the ECB's payment framework through advanced technologies.

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