ECB's Cipollone: Central Banks Must Keep up With Technology

9 February 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Executive Board member Piero Cipollone on Friday said that central banks needed to keep up with innovation and technology to modernise finance.

In a speech at the Annual Congress of Financial Market Professionals in Genova, Italy, Cipollone said that ‘central banks must be ready for the possible broad adoption of new technologies and keep pace with them as they have done in the past.’

‘This will help to combine innovation with financial stability, facilitating the modernisation of finance’, he continued.

New technical solutions should be able to adapt to rapid innovation while serving traditional purposes, he said.

‘[I]t is ultimately the market’s responsibility to demonstrate the added value of DLT for wholesale business cases, and to establish and implement the necessary standards’, he said.

However, the impact of DTL in monetary policy needed to be ‘be fully understood and possible risks duly assessed and mitigated’, he said.