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Central bank money settlement of wholesale transactions in the face of technological innovation
Through its TARGET Services, the Eurosystem facilitates the settlement of wholesale financial transactions in central bank money, the safest and most liquid settlement asset. The possibility to settle such transactions in central bank money (that is, in the form of reserves held by financial institutions at the central bank) helps to reduce risks to the financial system and to support financial stability and trust in the currency. The provision of settlement infrastructures is part of how the Eurosystem carries out its basic task of promoting the smooth operation of payment systems. The Eurosystem is continuing to ... (full story)