ECB’s $3 trillion daily payments machine meltdown dents the international standing of the bank.

Following an unprecedented daylong malfunction in the European Central Bank’s system that which supports trillions of euros’ worth of money transfers, banks found it difficult to process payments on Friday.

The ECB announced late Thursday that it had resolved the almost seven-hour disruption in its payment system that had left trillions of euros’ worth of transactions between businesses, consumers, and investors uncertain.

The collapse, which has damaged the central bank’s reputation internationally and hurt one of the world’s most significant currencies, was still having an impact on Friday.

Transactions between banks were unable to proceed due to the breakdown of the so-called Target 2 system (T2), which settles over 3 trillion euros ($3.12 trillion) in daily payments and financial activities.

According to a spokesman for the Bundesbank, Germany’s central bank, the disruption caused some regular bank payments, including wages, pensions, and social welfare transfers, to be delayed and may take several hours longer than usual to arrive.

Delays were also observed by Clearstream, which manages over 500,000 transactions per day and conducts the trade of instruments like company shares.

Despite having mostly restored services, the business stated that there was still a residual impact on Friday.

The situation continued until early Friday morning, disrupting the system for what is probably going to be several days and delaying money delivered in the night for roughly six hours.

Although it is still unclear if ordinary bank clients would be affected, the incident has cast doubt on the lender-to-lender transactions that are essential to the eurozone’s economy.

The European Central Bank (ECB) announced in a statement late Thursday that T2 was operating regularly once more but that all of the deadlines for settling the day’s payment flows had been delayed by several hours.

It claimed that the outage was caused by a “hardware defect” rather than “malicious (or) foul play.”

Until the problem was resolved, banks that relied on the system to settle their accounts with one another were told to continue putting their payments in the queue.