Summary
- The Bank of Italy said Europe should review a shift toward tokenized euro-based payment systems.
- It said existing payment systems have not kept pace with changes in the digital-asset environment and that blockchain-based tokenization technology could improve efficiency and scalability.
- Experts said that if a central bank-led tokenized payments system becomes reality, the boundary between the traditional financial system and the blockchain ecosystem could narrow.
Forecast Trend Report by Period
Europe's payment infrastructure needs a digital overhaul, with the Bank of Italy calling for a review of a shift to a tokenized euro-based payments system.
Solid Intel, a digital-asset news channel, reported on May 5 that the Bank of Italy said the European Union should consider introducing tokenization into the euro payments system.
The central bank said the existing payments framework does not adequately reflect changes in the digital-asset environment. It added that blockchain-based tokenization could improve efficiency and scalability.
No details were disclosed on how such a system would be introduced or on any timetable. Experts say a central bank-led tokenized payments system, if implemented, could quickly narrow the divide between the traditional financial system and the blockchain ecosystem.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
