European Central Bank selective service providers for possible digital euro rollout

The European Central Bank (ECB), as part of its preparation phase for a potential launch of the digital euro, announced the outline agreements to technology providers responsible for the Central Bank Digital Currency (CBDC) components.

In a notice on Thursday, the ECB Says It comes to agreements with the seven creatures – and at least one more expected to be announced – to provide services related to fraud and risk management, a safe exchange of payment information, and software development for a possible digital euro. Among the companies are Feedzai, which uses AI to see the fraud and the security technology company Giesecke+Devrient.

“Following the conclusion of the Framework Agreement, the G+D and other successful tenderers will work with the ECB to finish planning and time -time,” Dr. Ralf Wintergerst, CEO of Giesecke+Devrient. “Under the guide of the ECB Governing Council and in accordance with the law of the EU, this work covers the design, integration, and development of the digital euro service platform.”

ECB officials have explored a potential digital euro rollout since 2021, Moving to the preparation phase in late 2023 as part of its plans. Although Thursday’s notice clarified that the authorities at the central bank will only decide whether to launch the CBDC “once the digital euro regulation is adopted,” an ECB official said last week That a launch in 2029 was possible.

Related: A third of central banks is cool in launching CBDCs in regulatory concerns

“The actual development of the components – or its parts – will decide at another stage, subject to the decision of the ECB governing the potential next stage of the project,” the ECB said. “Outline agreements are not involved in any payment at this stage and include care that allows the scope to be adjusted in accordance with changes in law.”

The other components and services that technology companies will provide include the “alias lookup,” which allows digital euro users to send or receive funds “without having to know the service providers of the payment service of other end-users.” GIESECKE+DEVRIENT is also responsible for engineering and development of allowing users to make or receive payments with digital euro while offline.

EU authorities are expressing concerns about stablecoin risks

Among the potential digital euro rollouts, officials with ECB and European Union financial guardians have warned about possible risks to local markets introduced by some stablecoins. These policies contrast with the US, where many members of Congress and President Donald Trump signed a bill in Stablecoin in July, which established a regulatory framework for coins.