In mid October the European Central Bank (ECB) held another industry contact group meeting about its planned digital euro trials of wholesale settlement for DLT networks, including a wholesale digital euro. It shared the themes it wants to explore and the phases of the pilots.
As previously outlined, the wholesale trials will test three interoperability solutions for delivery versus payment (DvP) to settle DLT securities transactions. One is a wholesale CBDC from the Banque de France. Another is Italy’s escrow solution that links to the conventional TIPS system. And the third is Germany’s trigger solution that also links to TARGET-2.
In its exploration of the themes, the ECB and Eurosystem already have several questions. For example, they want to establish whether there’s a business case for instant settlement. Or whether the industry is more interested in atomic settlement. From what we’ve heard, atomicity is highly desirable. It’s the ability to specify precise timing that enables greater control over cash. Often it might not be instant, but sometimes it might.
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