Escrivá defends central bank money as anchor for tokenised finance
Speaking at the 10th Conference of Mediterranean Central Banks, Banco de España Governor José Luis Escrivá called for preserving the two-tier monetary system and central bank money as tokenised financial markets expand across Europe.
From Pontes to the Appia blueprint
Governor José Luis Escrivá stressed that technological advances in distributed ledgers must not compromise the two-tier monetary architecture.
Addressing the 10th Conference of Mediterranean Central Banks, Escrivá noted that innovation should not force a choice between old and new systems: “Central bank money is not a relic, it is a public good that cannot be easily replaced.”
The Pontes bridge, launched in September 2026, connects market DLT platforms with TARGET Services to settle tokenised transactions in central bank money.
Looking ahead, the Eurosystem plans to publish its Appia blueprint in 2028 to shape tokenised wholesale finance.
Retail sovereignty and cross-border rails
Beyond wholesale markets, Escrivá framed the digital euro as a safeguard for monetary sovereignty as physical cash usage recedes in retail payments.
On cross-border payments, he warned that international transactions remain slow and costly due to regulatory and technical frictions.
While multilateral initiatives like the BIS-led Project Agorá, the Nexus fast payment link, and TIPS connections offer new rails, Escrivá noted that progress ultimately requires international regulatory coordination.
Bridges instead of walled gardens
Escrivá offers a realistic defense of central bank money against crypto hype.
Building pragmatic bridges like Pontes allows the Eurosystem to modernize wholesale settlement without sacrificing stability.
Yet without international regulatory alignment, technical payment rails will fail to eliminate cross-border friction.