Isabel Schnabel, member of the Executive Board of the European Central Bank (ECB), publicly defended tokenization as a tool capable of integrating financial infrastructures that are currently divided by national borders. Her statements came in the context of a broader debate about the future of the financial system.
However, Schnabel warned that stablecoins should not be seen as substitutes for central bank money. She emphasized that digital currencies issued by private entities do not offer the same guarantees as institutional currency.
This position from the ECB comes at a time when the debate on digital currencies and tokenization is gaining momentum globally, with several central institutions exploring how these technologies can modernize payment systems and existing financial infrastructure.
