The European Central Bank (ECB) has taken another step in its ongoing assessment of a potential digital euro.
As part of its preparation phase, the ECB has signed agreements with several technology companies to support early work on the infrastructure that could be needed.
Seven firms have been selected, with more expected to follow. These companies will assist in various areas, including detecting fraud, securing transactions, and developing the software systems necessary for a digital currency.
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One of the participants is Feedzai, a company that uses artificial intelligence (AI) to help identify fraudulent activity. Another is Giesecke+Devrient, known for its work in digital security.
Dr. Ralf Wintergerst, CEO of Giesecke+Devrient, confirmed the company’s involvement in planning and designing what is being referred to as the Digital Euro Service Platform. The ECB has stated that all work will follow EU regulations and be guided by its Governing Council.
Currently, these new agreements allow the ECB and its partners to begin planning and outlining technical tasks without committing to full-scale development or financial commitments. These arrangements also allow flexibility, so the scope can change depending on future legal decisions.
The services being developed also include an “alias lookup” feature. This would make it possible for users to send or receive money without needing to know the other person’s banking details.
Recently, Piero Cipollone, a member of the European Central Bank’s Executive Board, suggested that the digital euro is unlikely to launch before the middle of 2029. Why? Read the full story.
