Joachim Nagel, President of the Deutsche Bundesbank, has issued a powerful call for regulatory leadership in the age of tokenisation, warning that central banks must act decisively to shape the future of digital finance.
Speaking in a fireside chat with Swift CEO Javier Pérez-Tasso at Sibos 2025 in Frankfurt, Nagel placed the digital euro, tokenised assets and infrastructure transformation at the heart of Europe’s monetary strategy.
“The digital euro is not just a project—it’s a responsibility,” Nagel told a packed audience. “We are not experimenting for the sake of innovation. We are building the foundations of trust in a digital world.”
His remarks come just days after the European Central Bank confirmed a second round of digital euro trials, focusing on offline payments, privacy safeguards and integration with existing banking systems. The ECB’s initiative aims to ensure that central bank money remains accessible and relevant in an increasingly tokenised economy.
Nagel made clear that the Bundesbank views tokenisation as a structural shift, not a passing trend. “This is not just about technology. It’s about sovereignty, stability and the future of money itself,” he said. “We must ensure that Europe has a credible, secure and scalable digital currency—one that reflects our values and supports our economy.”
Throughout the conversation, Nagel struck a balance between urgency and caution. He praised the pace of innovation but warned against fragmentation. “If every jurisdiction builds its own siloed approach, we risk losing the very interoperability that tokenisation promises,” he said. “Regulators must work together—not just across Europe, but globally.”
He also welcomed Swift’s announcement of a blockchain-based ledger, unveiled earlier in the week, as a sign that infrastructure providers are stepping up. “This is a step in the right direction,” Nagel said. “We need public and private actors to align on standards, governance and resilience. The infrastructure of tomorrow will be built together.”
Pérez-Tasso echoed the sentiment, noting that Swift’s new ledger is designed to support tokenised asset flows across multiple platforms. “We’re not trying to build a new financial system,” he said. “We’re helping the current one evolve.”
Nagel’s tone was both pragmatic and passionate. At one point, he reflected on the broader implications of digital currency: “Money is not just a medium of exchange. It’s a social contract. If we digitise it without care, we risk weakening that contract. But if we do it right, we can strengthen it for generations.”
He also addressed the geopolitical stakes, suggesting that Europe must act decisively to maintain monetary sovereignty. “If we don’t offer a credible digital alternative, others will fill that space. The digital euro is part of Europe’s answer to that challenge.”
Nagel called for a “regulatory mindset that embraces innovation without compromising stability,” and urged central banks to engage more deeply with emerging technologies. “We cannot afford to be passive observers. We must be active participants in shaping the rules of engagement.”
The fireside chat was one of the most anticipated sessions at Sibos 2025, which has drawn over 10,000 delegates to Frankfurt for a week of discussion on AI, digital assets and infrastructure transformation. Held at Frankfurt’s Messe, the event has placed tokenisation and interoperability at the centre of the agenda.
Nagel closed with a message of optimism and resolve: “We are at the beginning of a new chapter in financial history. It will be written not just by technologists, but by policymakers, institutions and citizens. The digital euro is our contribution to that story—and we intend to get it right.”
