ECB empowers fintechs with direct access to European central bank payment systems

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The European Central Bank (ECB) has introduced a regulatory framework that allows non-bank payment service providers (NB-PSPs) to access Eurosystem Central Bank Payment Systems.

The move shows a change in the local payment ecosystem. This allows payment institutions such as Stablecoin issuers and e-money companies to connect directly to key infrastructures and tips such as SEPA without relying on traditional banks.

According to the rules:

“The eligibility of NB-PSP to access the Eurosystem Central Bank’s operating payment system will be to improve the efficiency and smooth functionality of the retail payment sector, including but not limited to providing immediate payments throughout the Euro area. It is intended to be.

The framework provides EU fintech and crypto companies with payment infrastructure that can reduce operational costs and improve transaction efficiency.

The move shows advances in integrating digital finance into traditional banking systems, but the ECB continues to be cautious about crypto as it cannot use central bank accounts to protect client funds. .

The ECB stated:

“Eurosystem Central Banks may not provide or provide accounts to NB-PSP or CryptoAsset service providers.”

Instead, central banks do not provide protected accounts for NB-PSPs and cryptographic service providers, and therefore need to establish separate arrangements to protect their client assets.

In particular, the ECB has recently taken a firm stance on Bitcoin, warning that it could reassess its relationship with the European Central Bank, which it holds as a financial asset. Still, the latest decision represents a step towards modernizing the payment environment in Europe.

What does this mean for cryptography?

Patrick Hansen, a senior Circle executive, noted that the change could significantly reduce the risks of the other party while reducing settlement costs.

He said the regulations aim to reduce transaction costs, improve payment speeds and strengthen competition within the EU financial sector by reducing bank dependency.

This will promote a more comprehensive payment ecosystem and drive innovation between fintech companies and digital asset service providers.

Meanwhile, cryptographic entities considering initiatives must meet strict regulations and IT security requirements. These measures will allow only companies with robust financial and technical infrastructure to participate in the system.