The European Central Bank (ECB) has taken a significant step forward in its digital euro initiative by selecting several firms to develop the core services required for a potential central bank digital currency.
Service providers appointed
According to an ECB release dated October 2, Feedzai and Capgemini Deutschland will be responsible for fraud and risk management, while Almaviva and Fabrick have been tasked with app and software development.
Giesecke+Devrient will focus on offline payment functionality.
Additionally, EquensWorldline and Senacor FCS will manage secure information exchange, with Sapient GmbH and Tremend Software Consulting chosen for multiple roles.
The ECB stated that another provider for offline services will be announced at a later date.
Emphasis on payment security and efficiency
The ECB’s renewed push for a digital euro comes as the EU seeks to remain competitive in the evolving payments sector and reduce reliance on dollar-denominated stablecoins.
ECB President Christine Lagarde recently told lawmakers in Brussels that Europe must accelerate progress on both retail and wholesale versions of the digital euro to strengthen financial sovereignty and minimize external vulnerabilities.
Next steps and regulatory process
The central bank clarified that the current contracts do not involve payments and are subject to revision in accordance with EU legislation.
A final decision to issue a digital euro will only occur after the Digital Euro Regulation is formally adopted.
If launched, the digital euro would coexist with cash, aiming to improve payment efficiency and reduce dependence on private stablecoins.
Officials have signaled that, even if approved, a rollout may not happen until later in the decade.
