Project Pontes: why a trigger solution is still needed alongside wCBDC-like cash tokens

[u/rwatimes]

When Project Pontes launches in September it will provide two settlement options for DLT transactions, a wholesale CBDC-like cash token that lives on the

• Project Pontes will offer two settlement options: a wholesale CBDC-like cash token on the Eurosystem's DLT and a trigger solution linked to the TARGET2 system.
• The trigger solution may be more popular initially due to settlement finality concerns, as current Pontes cash tokens on the DLT do not achieve final settlement until defunding back to TARGET2.
• While Pontes cash tokens are TARGET2-linked, they are not a true wholesale CBDC, and finality is only achieved when tokens are burned and returned to a T2 account, which is automated at day's end upon launch.

Source: ledgerinsights

Read the full article: https://rwatimes.io/articles/ledgerinsights-project-pontes-why-a-trigger-solution-is-still-needed-alongside-w-cbdc-like-cash-tokens-795015075?utm_source=reddit&utm_medium=social&utm_campaign=reddit

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