European central bank providers choose a possible deployment of the digital euro

The European Central Bank (ECB), as part of its preparation phase for a potential launch of the digital euro, announced framework agreements with technology suppliers responsible for the Central Bank’s digital currency (CBDC).

In an opinion Thursday, the ECB said He had concluded agreements with seven entities – and at least another expect to be announced – to provide services related to fraud and risks management, a secure exchange of payment information and software development for a possible digital euro. Among the companies were Feedzai, which uses AI to detect fraud and the Safety Technology Society Giesecke + Devré.

“Following the conclusion of the framework agreement, G + D and other successful tenderers will work with the ECB to finalize planning and deadlines,” said Dr. Ralf Wintergerst, CEO of Giesecke + Devrie. “Under the direction of the Governance Council of the ECB and in accordance with EU legislation, this work will cover the design, integration and development of the digital service platform in euros.”

ECB officials have explored a potential deployment of the digital euro since 2021, move in the preparation phase At the end of 2023 as part of his plans. Although Thursday’s opinion said that the authorities of the Central Bank would only launch the opportunity to launch the CBDC “Once the digital regulation in euros has been adopted”, an ECB manager said last week That a launch in 2029 was possible.

In relation: A third of central banks cool the launch of CBDC on regulatory concerns

“The real development of components – or parties of these – will be decided at a later stage, subject to the decision of the BCE governance council on the next potential phase of the project,” said the ECB. “The executive agreements do not involve any payment at this stage and include guarantees allowing the range to be adjusted in accordance with changes in the legislation.”

The other components and services that technological companies will provide include “alias search”, allowing users of the digital euro to send or receive funds “without necessarily knowing the details of the payment service provider for the other end user”. Giesecke + Devrienment is also responsible for engineering and development of user authorization to make or receive payments with digital euros during the offline line.

EU authorities express concerns concerning the risks of stable

In the middle of the potential deployment of the digital euro, ECB officials and European Union financial surveillance have warned of the possible risks in the local markets introduced by certain stablecoins. These policies contrast with those of the United States, where many members of the Congress and President Donald Trump signed a stable bill in July, establishing a regulatory framework for the documents.