The European Central Bank (ECB) has introduced a regulation framework with which non-bank payment service providers (NB-PSPs) have access to the central bank payment systems of the Eurosystem.
This movement marks a shift in the ecosystem of the region. This allows payment institutions and E-money companies such as Stablecoin expenditure to connect directly to important infrastructures such as SEPA and tips without trusting traditional banks.
According to the Regulation:
“The suitability of NB-PSPs to gain access to the Euroosystem Central Bank Operated Payment Systems is aimed at increasing efficiency and smooth functioning of the retail payments sector, but not limited to, facilitating offering immediate payments in the euro area. “
The framework offers fintech companies and crypto-related companies in the EU a payment infrastructure that can lower operational costs and improve transaction efficiency.
Although this movement opens the progress of digital financing in the traditional banking system, the ECB remains careful with crypto, because these settings cannot use central bank accounts to protect customer funds.
ECB explained:
“Central banks of EuroSystem will not offer or provide security accounts to NB-PSPs or to Providers of Cryptoasset.”
Instead, they must determine separate schemes to protect customer assets, because central banks will not offer security accounts for NB-PSPs and crypto service providers.
In particular, the ECB has recently taken a fixed attitude towards Bitcoin, even warning that it can re -assess relationships with a European Central Bank that it holds as a Ministry of Asset. Nevertheless, the newest decision is a step towards modernizing the European payment landscape.
What does this mean for crypto?
Patrick Hansen, a senior executive at Circle, noted that this change could considerably reduce the risks of the counterparty and considerably reduce the costs of the settlement cases.
According to him, the regulation is aimed at reducing transaction costs, improving the settlement rate and improving competition within the EU financial sector by reducing the dependence on intermediaries of banking.
It would promote a lake including ecosystem for payments, which encourages innovation at fintech companies and digital assets.
In the meantime, crypto entities that look into the initiative must meet strict legal and IT security requirements. These measures ensure that only companies with robust financial and technical infrastructures can participate in the system.