ECB Selects Tech Giants for Digital Euro Infrastructure by 2029
The European Central Bank (ECB) has taken a significant step towards the digital euro. It has selected ten tech companies to build the infrastructure, with a realistic launch target set for mid-2029 in the Eurozone, pending European Parliament approval. The project aims to reduce Europe's reliance on non-European payment systems and enhance control over its payment infrastructure.
The ECB has chosen providers for five key components of the digital euro system. German security company Giesecke+Devrient, partnering with Nexi and Capgemini, leads the offline payments segment. They will develop an offline solution for the digital euro infrastructure, expected to launch in 2029.
Portuguese startup Feedzai has been awarded the contract for fraud detection and prevention, with an estimated value ranging from €79.1 million to €237.3 million. The ECB is working with top-ranked companies initially, with each component having a first-ranked and second-ranked provider.
The digital euro is designed to coexist with cash and bank deposits, acting as a public good that benefits society. It aims to strengthen Europe's autonomy in payments, reducing dependence on non-European systems. However, European Parliament approval remains the biggest hurdle, with lawmakers expressing concerns about privacy, impact on commercial banks, and the ECB's operational capacity.
The ECB's selection of tech companies for the digital euro infrastructure marks a significant milestone. With a launch target set for mid-2029 in the Eurozone, the project aims to bolster Europe's payment autonomy. However, the path to realization is not without challenges, with European Parliament approval being the most crucial hurdle to overcome.
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