ECB announces partners for expected digital euro rollout
The European Central Bank has picked external providers that will help in the rollout of its anticipated digital euro.
- The European Central Bank has announced companies that will offer services for digital euro.
- ECB says the move is part of the ECB’s preparation phase for a potential launch.
- Selected companies include Feedzai, Capgemini Deutschland, and equebsWorldline.
The ECB said in an announcement on Oct. 2 that it has selected providers for five components and services of the central bank digital currency, with this the latest phase of the preparation for a potential launch of the token.
ECB’s selection of the qualified partners for the various services follows the call for applications the central bank published in January last year.
The European banking regulator also put out an invitation to tender, with targeted providers able to offer technology solutions and components around alias lookup, fraud and risk management, app and software development kit, offline services, and secure exchange of payment information.
Digital euro service providers
Per the announcement on Thursday, the ECB has entered into and signed framework agreements with several providers. The regulator has picked the companies it plans to work with for each of the five digital euro components, except for the offline solution segment where it announced one and plans to reveal the second provider in due course.
Firms and providers who will work with the European Central Bank on the digital euro include Sapient GmbH & Tremend Software Consulting, Feedzai, Capgemini Deutschland,equensWorldline and Senacor. Tremend is a software engineering provider, while Feedzai is an artificial intelligence-powered fraud and risk management platform.
EquensWorldline is a leading payments processor in the Eurozone.
When will the CBDC launch?
While the digital euro has been on the ECB’s timeline since 2021, the official launch is still unclear and developments such as these only constitute further preparations, officials have often pointed out. One of the factors that will determine progression to the launch phase is the adoption of the Digital Euro Regulation, according to the latest publication.
“The ECB will only take a decision to issue the digital euro once the Digital Euro Regulation has been adopted,” it said. “The actual development of the components – or parts thereof – will be decided at a later stage, subject to the ECB Governing Council’s decision on the potential next phase of the project.”
Despite these sentiments, reports emerged in August that the EU was looking to accelerate the process, with the Financial Times reporting that the ECB targeted launch on Ethereum and Solana. Stablecoin adoption rising amid regulatory developments like the GENIUS Act in the United States means the push for rollout could accelerate.
Interestingly, lawmakers in the U.S. have increasingly opposed any potential launch of a CBDC. President Donald Trump has also echoed these sentiments. Meanwhile, a report earlier in the year showed that about 30% of central banks have paused plans for CBDCs.
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