ECB Takes Major Step Towards Digital Euro by 2029
The European Central Bank (ECB) has taken a significant step towards a digital euro. It has signed agreements with seven companies to develop key components for a possible central bank digital currency (cbdc) by 2029. This follows the ECB Governing Council's decision to explore the possibility of a digital euro.
The ECB, in collaboration with selected technology providers, will lead the design, integration, and development of the digital euro service platform. This work aligns with EU regulations and is overseen by the ECB Council. The selected companies include Feedzai, specialising in AI fraud detection, and Giesecke+Devrient, renowned for its security technologies. They will work on systems for fraud and risk management, secure payment channels, and digital euro infrastructure software.
The digital euro is expected to offer innovative features. It may include an alias lookup function, enabling transfers without knowing the recipient's details, and offline payments are also being considered. However, the final decision to launch the digital euro will follow the adoption of regulations. Real development of components will begin later, depending on the Governing Council's decision.
The ECB and the chosen companies will work together under the ECB's governance board and in accordance with EU law. They aim to develop the digital euro service platform by 2029. Meanwhile, the ECB and EU financial regulators remain vigilant to potential risks, particularly those posed by stablecoins to regional markets.
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