European Central Bank Picks Providers For Possible Digital Euro Rollout

The European Central Bank (ECB) has announced a framework agreement with the technology provider responsible for the components of the Central Bank Digital Currency (CBDC) as part of the preparation stage for the potential digital euro launch.

In a notice on Thursday, the ECB said it had reached an agreement with seven entities and at least one entity to provide services related to fraud and risk management, secure exchange of payment information, and possible digital euro software development. Some companies have used AI to detect fraud and detect security technology company Giesecke+Devrient.

“Following the conclusion of the framework agreement, G+D and other successful bidders will work with the ECB to complete their plans and timelines,” said Dr. Ralf Wintergerst, CEO of Giesecke+Devrient. “Under the guidance of the ECB Management Council, in line with EU law, this work will cover the design, integration and development of digital Euro Services platforms.”

ECB officials have been investigating potential digital euro rollouts since 2021 and are moving into the preparatory phase in the second half of 2023 as part of the plan. Thursday’s notice revealed that central bank officials will only decide whether to launch the CBDC “after digital euro regulations have been adopted,” but ECB officials said last week that a 2029 launch is possible.

Related: Cool when a third of central banks launches CBDCs than regulatory concerns

“The actual development of the component, or its parts, will be decided at a later stage, subject to the decision of the ECB Management Council regarding the potential next stage of the project,” the ECB said. “The framework agreement does not include payments at this stage and includes safeguards that allow for adjustments in scope in line with changes in the law.”

Other components and services offered by technology companies include “alias lookups” that allow digital Euro users to submit or receive funds “without necessarily knowing the details of other end-users’ payment service providers.” Giesecke+Devrient is responsible for engineering and development where users can make or receive digital euro payments while offline.

EU authorities have expressed concern about stable risks

Amid a potential digital euro rollout, officials from the ECB and European Union’s financial watchdog agency are warning about possible risks in certain silly, ridiculous local markets. These policies contrast with the US policies that many members of Congress and President Donald Trump signed the bill law in July to establish a regulatory framework for the coin.