The European Central Bank wants to issue euros directly onto a blockchain, according to Executive Board member Isabel Schnabel. Speaking at the Jackson Hole symposium, she argued that tokenised markets need an asset only a central bank can create. Schnabel rejects stablecoins for settlement because their issuers cannot expand supply during a panic, unlike central banks. She cited the 1907 banking panic as precedent. The ECB's Pontes system launches next month, linking TARGET Services to blockchain platforms. During testing from May to November 2024, 64 institutions across nine jurisdictions settled nearly €1.6 billion in central bank money. Dollar-pegged stablecoins currently circulate about $304 billion, whilst euro-pegged tokens hold under $1 billion.

Europe's payments landscape is consolidating as both public and private players push for unified standards. The European Central Bank has signed partners to develop open payment standards for its digital euro, planned for launch in 2029, though a pilot won't begin until late 2027. Paysafe launched PaysafeWallet across 18 European markets, targeting cash-preferring consumers with an IBAN-enabled payment account. The European Payments Initiative's Wero wallet integrated with Worldpay to expand merchant acceptance. Europe's digital wallet transaction value will exceed €2 trillion in 2027, representing 5% of total consumer transactions, according to GlobalData Payment Instrument Analytics. Privacy concerns remain a key issue for digital euro adoption, whilst momentum is crucial as delays could allow competing schemes like Wero to establish consumer habits first.

Croatia's Boris Vujčić has been nominated as the next European Central Bank vice president, succeeding Spain's Luis de Guindos when his mandate expires in May. The Eurogroup confirmed the nomination on Monday, with Vujčić expected to take office on 1 June. The decision surprised observers, as Vujčić beat five candidates including favourite Finland's Olli Rehn and the European Parliament's preferred choices, Portugal's Mário Centeno and Latvia's Mārtiņš Kazāks. Whilst the nomination requires European Parliament hearings and ECB Governing Council review, this is largely procedural. Vujčić has led Croatia's central bank since 2012, guiding the country's EU accession in 2013 and euro adoption in 2023. Classified as a "moderate hawk", he advocates cautious interest rate reductions whilst warning against inflation threats.