The “enormous speed and accelerating change” of technologies is a major concern in the securities settlement space, according to an advisor for the European Central Bank (ECB).

Discussing new technologies in the settlement industry at Sibos in Toronto, Dirk Bullmann, advisor for the ECB, said it’s “difficult to absorb all the relevant information”.

“For all players, be it market players or central banks, we have to monitor and assess, and if we deem it appropriate these embrace new technologies.”

Bullman also held back from placing the ECB’s support behind the utility settlement coin project being spearheaded by banks including UBS, HSBC and BNY Mellon.

The new cryptocurrency is aimed at being used for clearing and settling transactions using distributed ledger technology (DLT).

“The utility settlement coin is an initiative we participate in,” said Tom Casteleyn

head of product management for custody, cash and foreign exchange. “It’s an initiative to make some progress in tokenising cash on the blockchain, not commercial bank cash, but an equivalent of central bank cash.

“Eventually one would think that – maybe – central banks would do it themselves but in absence of that, this might be a way forward.”

Bullman responded by saying: “When we interact with another world, the private sector cash world, then for me and for us it is still commercial bank money.

“You are in discussion with central banks and us to understand USC potentially for monetary policy perspective but it remains to be seen.”

The new digital cash is also backed by Credit Suisse, Barclays and State Street and according to reports could be set to go live in 2018.

“It needs to be central bank cash, and that’s why we’re doing utility settlement coin,” added Casteleyn. “We’re two years in and the group of banks participating is expanding.

“I’m not certain that over time we won’t be overtaken by central banks that take part in this.”

Andrew McCormack, senior director, technology at Payments Canada said: “We think that central bank cash on ledger is a fundamental building block and an enabler for a lot of other use cases when we talk about smart contracts and automation.”