Money in the digital age: digital euro, tokenisation and the role of central banks - European Central Bank

The European Central Bank has published a communication examining how money may evolve in the digital age, focusing on three connected themes: a potential digital euro, the tokenisation of assets, and the continuing role of central banks in the payment system. The publication is explanatory in nature, outlining the ECB's perspective rather than announcing a new policy decision.

Tokenisation refers to representing assets — such as securities or deposits — as digital tokens that can be transferred and settled on programmable infrastructures. The ECB's framing places central bank money at the centre of this shift, positioning it as a settlement anchor should tokenised markets grow. For a digital euro, the emphasis remains on a retail central bank liability that complements, rather than replaces, cash and commercial bank deposits.

For markets, the practical relevance lies in infrastructure rather than price direction. What to watch includes legislative progress on the digital euro, pilot work on tokenised settlement, and how banks and payment providers adapt their own offerings. These developments could gradually shape settlement speed, cost, and the competitive landscape — changes worth monitoring over time, not reacting to on any single headline.