ECB's Schnabel Says Central Bank Reserves Should Move On-Chain

European Central Bank Executive Board member Isabel Schnabel said at the Jackson Hole Economic Policy Symposium that central bank reserves remain superior to stablecoins as a settlement asset and should be placed on-chain. According to Odaily, she said stablecoins lack an independent ability to rapidly expand liquidity during periods of financial stress. Schnabel said tokenization can make financial transactions faster, safer, and programmable, but only if central bank money and other tokenized assets operate on the same infrastructure. She said the ECB's Pontes project is scheduled to begin in September 2026 and will initially connect TARGET services with DLT platforms operated by market participants. Pontes will later support direct settlement on DLT platforms operating in the euro system and gradually add smart contract functions and 24/7 operation. The ECB's Appia project is responsible for setting the long-term architecture, technical standards, and legal framework for Europe's tokenized asset market, with a full blueprint expected in 2028.