European Securities and Markets Authority (ESMA) Executive Director Natasha Cazenave has indicated that current arrangements allowing tokenized deposits and electronic money tokens (stablecoins) in digital asset trading represent temporary solutions. The regulator has allowed participants in the DLT Pilot Regime to use these digital currencies but prefers central bank money for wholesale settlement.
During a speech at an event in Dubrovnik, Croatia, she emphasized that “these alternatives are only interim solutions” and stressed the importance of anchoring tokenization within a “stable monetary framework”.
“Central bank money will remain the benchmark for safety and stability in wholesale markets,” Cazenave stated, highlighting ongoing European Central Bank initiatives. These include Pontes, an interim solution that integrates existing settlement infrastructure for DLT settlement, such as Germany’s Trigger solution. There are longer term plans for a wholesale CBDC as part of Project Appia.
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