Czech central bank tests DLT bonds, boxing out stablecoins

Czech National Bank Governor Aleš Michl wants central bank money to anchor tokenized securities settlement, a preference that could limit the institutional payment balances available to stablecoin issuers. He set out that position on Nov. 10, as the bank announced it had completed small bond and repo tests. If eligible institutions can pay through usable central-bank-money infrastructure, those trades need not generate demand for stablecoins. Yet, the CNB has not identified the pilot’s exact cash instrument, so the competitive implication remains forward-looking. The opportunity for private issuers depends on who supplies the payment asset and whether bonds move onto distributed ledgers. The CNB reported completed transfers, purchases and sales against payment, and repo transactions during October and November.

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