ECB Signs Agreements to Develop Digital Euro Infrastructure
The European Central Bank (ECB) has signed framework agreements with seven technology firms. These agreements aim to develop core infrastructure for a potential digital euro. No payments have been made under these contracts yet. The project could launch as early as 2029, subject to legislative approval.
Confirmed partners include Feedzai, an AI-based fraud detection company, and Giesecke+Devrient (G+D). G+D will lead the design and development of the Digital Euro Service Platform (DESP). The DESP will support secure messaging, alias lookup for payments, and offline transaction capabilities.
The ECB plans to create a fraud detection and prevention system for online CBDC transactions. This system is required under the upcoming Digital Euro Regulation.
G+D CEO Dr. Ralf Wintergerst said the collaboration will focus on finalizing design and integration plans. The ECB Governing Council will guide the process. The framework’s estimated value is €79.1 million, with a potential maximum of €237.3 million.
ECB Strengthens Stablecoin Regulations Amid Digital Euro Progress
This development comes as the ECB tightens its stance on stablecoins. Recently, the ECB supported banning “multi-issuance” stablecoins due to financial stability concerns. This non-binding recommendation by the European Systemic Risk Board (ESRB) affects cross-border stablecoin issuers like Circle and Paxos.
The ECB’s approach contrasts with U.S. policy. The Biden administration passed stablecoin legislation in July, while Europe seeks stricter controls on tokens spanning multiple jurisdictions. ECB President Christine Lagarde warned in September that non-EU issuers threaten monetary sovereignty. She urged lawmakers to act quickly on safeguards.
ECB Pushes Euro-Native Digital Currency for Institutions
By advancing the digital euro and restricting private stablecoins, the ECB aims to create a euro-native alternative. This system is designed mainly for institutional use, not open networks. It remains uncertain if this top-down model can compete with permissionless systems. However, the EU’s regulatory goals are clear and firm.
