European Central Bank Executive Board Member Schnabel: Central bank currency must be on-chain

European Central Bank Executive Board member Isabel Schnabel stated that central bank money must be on-chain; otherwise, the tokenized market will increasingly rely on private or foreign currency settlement assets.

CoinDesk cited her viewpoint, stating that in the absence of on-chain central bank money, the settlement of the tokenized market will shift more towards privately issued assets or foreign currency-denominated assets. Schnabel believes that bringing central bank money on-chain helps maintain the settlement anchor role of public money in a tokenized environment.