The European Central Bank (ECB) has recently signed agreements with a number of technology providers as part of the preparation of a potential euro figure. These agreements cover various aspects of the central bank ' s digital currency, including fraud prevention, risk management, the secure exchange of payment information and software development.
The big technology company joined the digital euro team.
According to the announcement issued on Thursday, seven companies have been nominated and at least one more is expected to join. It includes Feedzai, a company that uses artificial intelligence to detect fraud, as well as the Gieseecke+Devritt Safety Technology Group, which is known in the areas of payment systems and banknote production.
Dr. Ralph Wintergerst, CEO of Giesecke+Devritt, said: “After the framework contract is signed, G+D and other successful bidders will work with the ECB to complete the planning and timetable.” He added that, under the guidance of the Council of the European Central Bank, work would cover the design and development of a digital euro service platform.
The ECB clarified that these agreements do not involve any financial payments at this stage and include security measures that allow for adjustments required by European legislation. According to the bank, the actual development of the component would be decided later, depending on the approval of the management committee for the next phase of the project.
The future of the euro
The services under the new agreement will include “a search for aliases”, a feature that allows digital euro users to send or receive money without having to know the full details of the service provider. Giesecke+Devritt will also work on off-line payment solutions to enable users to trade in digital euros without Internet connections.
The digital euro project was first launched in 2021 and entered the preparatory phase in 2023. Although the decision to formally introduce the currency has not yet been taken, a ECB official recently suggested that 2029 might be a possible date for the roll-out.
This project is being presented at a time when European regulators are concerned about the impact of the stabilization currency. European Central Bank President Christine Lagarde stated in September that EU legislators needed to address the risks posed by the issuance of a stable currency within the framework of the region’s encrypted asset market, as well as from outside the EU.
In addition, the European Systemic Risks Committee adopted a recommendation calling for a ban on certain co-issues, although this measure is not binding. Officially, if these tokens are not controlled, they may pose risks to financial stability.