Highlights
- ECB Executive Board member Isabel Schnabel says central bank money moving onto blockchain is “no longer optional” for euro sovereignty.
- She made the case in a Jackson Hole speech titled “Central banks on-chain” on August 28, 2026.
- The ECB's Project Pontes, a DLT-to-TARGET settlement bridge, is set to launch September 21, 2026.
- Schnabel argues that without action, dollar stablecoins risk becoming the default settlement layer even in Europe.
- A new 61-institution working group begins in September to explore a longer-term unified ledger design.
European Central Bank Executive Board member Isabel Schnabel used a speech titled “Central banks on-chain” at the 2026 Jackson Hole Economic Policy Symposium to argue that moving central bank money onto blockchain rails is “no longer optional” for preserving European monetary sovereignty. Watcher.Guru reported the remarks on X as they circulated on August 30. Schnabel's core warning: if public money stays off-chain while financial assets increasingly settle on distributed ledgers, dollar-denominated stablecoins could become the default cash settlement layer even within the eurozone.
The comments land just weeks ahead of Project Pontes, the Eurosystem's bridge connecting institutional DLT platforms directly to its existing TARGET payment rails, which is scheduled to go live on September 21, 2026. Pontes is designed to support settlement finality on a Eurosystem-operated DLT layer, with smart-contract functionality and eventual 24/7 operation on its roadmap. The ECB has already tested this approach: a 2024 pilot brought together 64 participants across nine jurisdictions and settled roughly €1.6 billion in central-bank money on distributed ledgers. BIS General Manager Pablo Hernández de Cos reinforced Schnabel's framing hours later, arguing that stablecoins cannot serve as credible large-scale payment infrastructure and that tokenized bank deposits settling in on-chain central-bank money are the more durable path.
Why the ECB Is Watching Dollar Stablecoins
For crypto markets, the framing is notable less for what it says about crypto itself than for what it says about who the ECB sees as the competition: dollar stablecoins like Tether's USDT, which alone commands the majority of the global stablecoin market. Schnabel's proposed architecture — tokenized reserves at the base, tokenized commercial bank deposits above that, and regulated euro stablecoins occupying only an “edge” role — would position euro-denominated stablecoin issuers as payment complements rather than as core settlement infrastructure, a structure that could shape how aggressively euro stablecoin projects scale relative to their dollar-based competitors.
Related: Coinbase CEO Says Tokenized Assets Will Repeat the iPhone Moment
What to Watch Next
The immediate date to watch is September 21, 2026, when Project Pontes goes live as a pilot. Beyond that, a newly formed 61-institution contact group begins work in September under the umbrella of Project Appia to determine whether Europe ultimately needs a single unified settlement ledger or a network of interoperable DLT platforms — a decision that will shape how central bank digital money actually gets built out over the coming years.
FAQ
What did ECB's Isabel Schnabel say about blockchain?
Schnabel argued central bank money must move onto blockchain rails, calling it “no longer optional” for preserving European monetary sovereignty.
What is Project Pontes?
Project Pontes is the ECB's bridge connecting institutional DLT platforms to its TARGET payment rails, letting tokenized assets settle in central bank money; it launches September 21, 2026.
Why is the ECB worried about dollar stablecoins?
Schnabel warned that if euro central bank money stays off-chain, dollar stablecoins like USDT could become the default settlement layer for on-chain finance even in Europe.
What is Project Appia?
Project Appia is a 61-institution working group starting in September 2026 to decide whether Europe should build one unified settlement ledger or an interoperable network of DLT platforms.
