Eurosystem’s comprehensive payments strategy

The European Central Bank (ECB) and the Eurosystem have defined a comprehensive payments strategy aimed at modernising the European payments ecosystem through the use of digital innovation, including tokenisation, distributed ledger technology (DLT) and the digital euro. The initiative seeks to improve the efficiency, integration and resilience of the payment system, whilst strengthening European strategic autonomy and the role of central bank money as the anchor of the system.

Eurosystem's comprenhensive payments strategy

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Executive summary

The Eurosystem and ECB’s comprehensive payments strategy drives the adoption of new technologies such as tokenisation and DLT to transform settlement processes and foster the development of new digital assets, whilst maintaining central bank money as the benchmark. It also promotes the modernisation of wholesale payments by improving infrastructure and developing innovative solutions, and encourages the standardisation, automation and integration of business-to-business (B2B) payments, alongside the expansion of instant payments. Furthermore, it addresses the fragmentation of retail payments and reliance on non-European providers through the development of the digital euro and pan-European solutions, and seeks to improve the efficiency, speed and interoperability of cross-border payments through interconnection initiatives and international coordination.

The central bank money settlement solution for DLT transactions is expected to be ready by the third quarter of 2026 through the Pontes initiative, whilst the digital euro could be issued in 2029, subject to the approval of the Regulation in 2026.

Main content

The content of the technical note is structured into the following main sections:

• Definition of strategic objectives. The strategy is centred on preserving the role of central bank money as the anchor of the monetary system, strengthening the strategic autonomy and resilience of European payments, fostering an integrated, competitive and innovative ecosystem, and supporting the international role of the euro, through a two-pronged approach based on improving existing infrastructures and developing new solutions.
• Tokenisation and the evolution of settlement assets. The Eurosystem is promoting the use of DLT technology to develop a market for tokenised settlement assets. Although central bank money remains the central element, it is complemented by private assets such as tokenised deposits, which are considered more suitable, and stablecoins, which, despite their potential benefits, pose risks to financial stability and the integrity of the system.
• Wholesale payments and financial infrastructure. There is a commitment to modernising infrastructure to ensure that the settlement of payments and securities continues to be conducted in central bank money. In this context, the T2 system is being strengthened as the main backbone, and DLT-based solutions, such as the Pontes and Appia projects, are being developed with the aim of improving integration and interoperability.
• B2B payments. It promotes the standardisation, automation and integration of corporate payments. To this end, it encourages the use of common standards, integration with business systems and the promotion of instant payments, with the aim of improving efficiency, transparency and reconciliation.
• Retail payments and the digital euro. Aims to reduce fragmentation in the retail payments market and dependence on non-European providers. In this context, the digital euro is seen as a key element in ensuring access to central bank money in digital form, strengthening resilience and inclusion, and complementing private solutions, alongside the promotion of the Single Euro Payments Area (SEPA) and instant payments.
• Cross-border payments. The aim is to improve international payments in terms of cost, speed, access and transparency. To this end, the interconnection of instant payment systems, the development of multi-currency services and integration with international infrastructures are being promoted, drawing also on innovations such as tokenisation.

Download the technical note on the Eurosystem’s comprehensive payments strategy.