TLDR
- The European Central Bank has chosen several companies to provide nuclear services for the Digital Euro project.
- ECB signed agreements for the detection of fraud, application for development, offline payments and secure data exchange.
- Feedzai and Capgemini Deutschland will handle fraud and risk management for digital euros.
- Almaviva and Fabrick are responsible for the app and software design related to the digital euro.
- Giesecke+Devrient will focus on enabling offline payment functionality for digital euros.
The European Central Bank (ECB) has progressed with the development of a digital euro and chooses several companies to provide nuclear services. This decision aims to ensure that digital euros can improve payment efficiency and compete with new digital currencies. The Central Bank’s progress highlights its commitment to creating a digital currency that can coexist with cash in the euro area.
ECB selects companies for digital euroinfrastructure
ECB has signed framework agreements with several companies to monitor different aspects of Digital euros. These agreements cover the detection of fraud, application development, offline payments and secure data exchange. The selected suppliers include Feedzai and Capgemini Deutschland for fraud management, Almaviva and Fabrick for software development and Giesecke+Devrient for Offline Payment Services.
Each service area has a primary supplier and an option to ensure continuity in the event of interference. The ECB has also noted that it plans to announce another supplier for offline services later. These efforts are in line with the ECB’s broader goal to strengthen the financial sovereignty in the EU, especially before global competition from Stablecoins.
Regulations and the next step
ECB made it clear that no payments have been made as part of these contracts yet, and the arrangements are subject to audit based on the future EU legislation. A final decision on the issuance of digital euros will follow the formal assumption of the digital euro regulation, which is still under negotiation. If approved, the digital euro would improve the payment efficiency and reduce the reliance on private Stablecoins.
Officials emphasized that the launch of digital euros may not occur until the latter part of the decade. However, they are engaged in promoting the project and ensuring that the euro area remains competitive in the developing payment sector.
