The European Central Bank (ECB) is accelerating the development of a central bank digital currency (CBDC) by signing contracts with technology companies as part of preparations for the potential launch of a digital euro. The ECB announced on the 4th (local time) that it has finalized contracts with seven companies to work on fraud prevention, payment information security, and software development. Contracts with at least one additional company are expected to be signed.
This contract includes Feedzai, which utilizes AI-based anomaly detection technology, and Giesecke+Devrient (G+D), a German company developing payment security solutions. The ECB emphasized that these partners will support the development of the core operating platform for the digital euro.
“Following the signing of the framework agreement, G+D and the selected companies will work closely with the ECB to develop a concrete timeline and implementation plan,” said Ralf Wintergerst, CEO of G+D. “They will design and integrate the digital euro service platform under EU law and oversight of the ECB Council.”
While the ECB has not yet officially decided to issue a digital euro, the European Union (EU) is working on establishing the legal framework for a digital currency. This technology partnership agreement is seen as a step toward establishing a pre-launch environment for the actual issuance of a digital euro.
While the political debate over digital currency access has intensified in the US, with President Donald Trump actively promoting his stance on cryptocurrency, Europe is seen as taking a more strategic and technology-driven approach. The ECB anticipates that a digital euro will reduce reliance on private payment systems and strengthen financial stability.
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