EU fails Amazon for development of ECB's digital euro

The European Central Bank (ECB) is currently in the experimentation phase of the digital euro. To do this, the institution invited five companies as part of the implementation of user interface prototypes. The idea is to simulate transfer operations to ensure that everything is optimal. Among the companies handpicked by the ECB is Amazon, which is the only non-European firm on the shortlist. Precisely, this presence of Amazon is not unanimous at the top of the union. European parliamentarians remain cautious about the unreliability of billionaire Jeff Bezos’ company in terms of confidentiality and taxation.

EU fails Amazon in ECB’s digital euro project

Digital euro: European parliamentarians criticize the choice of the ECB

The European Central Bank (ECB) is receiving a lot of criticism from MEPs for some of its choices. The European organization has decided to call upon several companies for the design of the prototype of the digital settlements in euro. Except that among these selected companies, there is Amazon, an American e-commerce company. And obviously, the precedents between the European Union and the company of Jeff Blezos give cause for concern.

EU politicians suspect the US company of lightness on privacy and even taxation. Moreover, of the five companies invited by the ECB, only Amazon is not European, which poses a real problem for some parliamentarians. Almost unanimously, MEPs expressed their major concerns and taxed the Amazon’s tax and social policy of “questionable”. They are indignant that a project as sensitive as the creation of the prototypes of the digital euro involves a company often accused of violate European data protection regulations. Recall that following its failures in terms of confidentiality, the American firm had received a record fine from the regulatory authorities. Moreover, the company had denied en bloc by appealing in stride.

It was on the sidelines of the quarterly exchanges between the various institutions of the European Union that Fabio Panetta, member of the Executive Board of the ECB, drew up an inventory of the progress of the institution, within the framework of the investigations into the digital euro. The parliamentarians took the opportunity to reaffirm their indignation at the role that Amazon could play in the ongoing process.

MEPs doubt the reliability of Amazon

MEPs have been clear, they do not trust Amazon at all. Eero Heinäluoma ; the centre-left parliamentarian returned to the accusations and the fine of 746 million euros which weighs against the company of Jeff Blezos. He used it to tackle the ECB and its dubious choices. On the side of the ECB, we tried to play the appeasement. ECB policymakers also raised the possibility that Amazon might not play a bigger role in the next phases of the project. They also specified that Amazon’s contribution to the creation of payment interfaces is enormous.

Moreover, the company would not have received a single penny for its services in the project. MEP Stephanie Yon-Courtin shocked by the pitch, said, “We know Amazon wants to be paid with data.” Jonas Fernandezalso remains worried and says it clearly: “Honestly, I am now more worried than before”.

The end of the prototype design process is scheduled for March 2023. In the meantime, the ECB will have its work cut out with MEPs. It will have to regain their confidence in the viability of the digital euro project.

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