The European Central Bank (ECB) has moved forward in the preparation phase for a possible digital euro, securing framework agreements with several technology firms tasked with building key components of the future central bank digital currency (CBDC).
In a statement released Thursday, the ECB confirmed deals with seven companies — with at least one more to be revealed soon — to provide services ranging from fraud prevention and risk monitoring to secure payment information transfer and software development. Among the chosen firms are Feedzai, an AI-powered fraud detection company, and Giesecke+Devrient, a well-known security tech provider.
“After finalizing the framework agreement, G+D and the other selected firms will collaborate with the ECB to define the roadmap and timeline,” explained Dr. Ralf Wintergerst, CEO of Giesecke+Devrient. “This work will be conducted under the ECB Governing Council’s direction and aligned with EU regulations, covering design, integration, and development of the Digital Euro Service Platform.”
The central bank has been examining the idea of a digital euro since 2021 and entered its preparation phase in late 2023. The ECB clarified, however, that the actual decision on whether to issue a digital euro will only be made once the Digital Euro Regulation is officially adopted. According to an ECB official, 2029 is a realistic timeline for a potential launch.
The bank added that “the concrete development of certain components will be decided later, based on the Governing Council’s approval for the project’s next stage. The current framework agreements involve no immediate payments and allow flexibility for adjustments if legislation changes.”
Some of the technical services being worked on include an “alias lookup” system, allowing users to send or receive funds without needing to know the other party’s payment service provider details. Giesecke+Devrient is also developing offline functionality, enabling digital euro payments even without an internet connection.
Concerns over stablecoins in the EU
While preparing for a potential digital euro, European regulators continue to flag risks tied to stablecoins. Authorities within the ECB and EU financial institutions have raised concerns that certain stablecoins could create instability in regional markets.
This stance differs from that of the United States, where President Donald Trump and lawmakers passed stablecoin legislation in July, introducing a regulatory framework for their use.
ECB President Christine Lagarde urged EU legislators in September to coordinate efforts on managing the risks posed by stablecoins issued jointly by entities covered under the EU’s MiCA regulation and firms outside the bloc.
Additionally, the European Systemic Risk Board recently issued a non-binding recommendation calling for restrictions on jointly issued stablecoins, signaling the EU’s cautious approach as the digital euro project advances.
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