Bank of Spain Governor Backs Tokenization Without Replacing Central Bank Money

Bank of Spain Governor José Luis Escrivá urged financial markets to adopt tokenization and distributed-ledger technology while keeping central bank money as the settlement anchor for payments and asset transfers.

“Technology can transform the way money and assets move, but it does not eliminate the need for trust,” Escrivá said in a keynote at the 10th Conference of Mediterranean Central Banks in Roda de Berà, Spain.

Escrivá described a two-tier monetary system built around central bank money, including cash and reserves, and commercial bank money, including household and corporate deposits. Central bank money serves as the public settlement asset that supports confidence in private money remaining interchangeable at par.

“We do not need to give up our sound two-tier monetary system. We can adapt it,” Escrivá said.

Distributed ledgers and tokenized markets can reduce reconciliation costs, coordinate settlement for complex transactions and automate processes through smart contracts, he said. Permissioned systems may also keep participants identifiable and governance clearer while introducing new forms of trust.

Escrivá said the technology used to record and transfer an asset is separate from the monetary liability used to settle the transaction. Tokenized securities do not inherently require unbacked crypto-assets or stablecoins for settlement.

Tokenized platforms may need to operate alongside existing banking infrastructure, making interoperability, common standards and secure connections important as the market develops. Escrivá said Pontes, launched in September 2026, connects approved distributed-ledger platforms with TARGET Services so tokenized-asset transactions can settle in central bank money.

The digital euro is intended to provide electronic access to central bank money while complementing cash and private payment instruments. The project remains in a preparatory phase, with technical work advancing and engagement with market participants continuing.

Escrivá identified cross-border payments as a continuing challenge because they remain slower, more expensive and less transparent than many domestic payment systems. He pointed to Agorá, which explores tokenized central bank and commercial bank money for programmable, multicurrency settlement, and Nexus, which seeks to connect domestic fast-payment systems.

The conference ran from Oct. 1-2 and brought together central-bank governors, deputy governors and senior officials from 13 countries, along with researchers, financial-sector representatives and officials from multilateral institutions. The approach aligns with efforts to connect traditional settlement systems with tokenized money in the United Kingdom.

“Central bank money is not a relic, it is a public good that cannot be easily replaced,” Escrivá said. The Eurosystem plans to crystallize its broader Appia work in a blueprint in 2028.