The European Central Bank (ECB) continues its preparations for a possible digital euro, marking a new stage in this multi -year project. In a recent press release, the institution announced the signing of agreements with several technological companies responsible for designing the essential components of this future currency. No final decision has yet been made, but this initiative confirms the will of Europe to modernize its payment systems.
In short
- The ECB has signed framework agreements with seven companies to develop the main elements of the digital euro and test new payment technologies.
- Giesecke+Devrie will work on offline payments, so that the CBDC can operate without internet connection.
- The implementation will depend on the adoption of the European regulatory framework before the decision of the Council of Governors of the ECB.
- This acceleration comes as Europe is concerned about the rise of stablecoins and their risks for financial stability.
The ECB sign of framework agreements with seven technological companies
The institution confirmed this week the signing of framework agreements with seven technological providers, one eighth to be announced soon. This announcement follows the comments of Piero Cipollone, member of the BCE council, which had indicated in September that 2029 would be the most realistic horizon for the launch of the digital euro.
According to the ECB, these partnerships will cover areas such as fraud detectionsecuring payment information and software development. Although no real transaction is provided at this stage, this stage establishes the technical and organizational foundations of the project.
Among the companies selected are Feedzai, specialized in detecting fraud, and Giesecke+Devrient (G+D), expert in security technologies.
The CEO of G+D, Ralf Wintergerst, said that his company will collaborate closely with the ECB and the other partners in order to define the calendar and the design of the future digital euro service platform, under the supervision of the Governors' Council and in accordance with the European legislative framework.
Key components under development
As part of these agreements, the selected suppliers will design and test various modules intended to support future operations of the digital euro. Among them is an “alias search” service, which would allow users to send money without knowing the payment provider of their recipient.
In addition, Giesecke+Devrie are developing offline payment technology, ensuring that the currency can be used even without internet connection. These innovations aim to make the CBDC practical and accessible for daily transactions throughout the euro zone.
A launch conditioned by the regulations and decisions of the Council
The ECB has been working on the concept of digital Euro since 2021 and started its preparation phase at the end of 2023. Although Piero Cipollone spoke of 2029 as the most plausible deadline, the ECB recalls that no final decision has yet been arrested.
The institution specifies that the concrete development of the components will be decided later, depending on The decision of the Council of Governors For the next phase of the project. The signed framework agreements provide adjustment clauses, making it possible to adapt the work if the legislative framework were to evolve.
The concrete development of the components, in whole or in part, will be determined later, subject to the decision of the BCE Governors' Council concerning the next possible phase of the project.
European Central Bank
An essential condition remains: the adoption of the Digital Euro Regulation, which must establish the legal basis for its issue and its operation. It is only this legislation in place that decision -makers will be able to determine if they actually launch the project.
The digital euro, a response to the rise of stablecoins
This advance comes as several European officials are concerned about the growth of stablecoins and their potential effects on financial stability. At the same time, the European Council for Systemic Risk (CERS) recommended that the joint emission of these assets are limited, even if this measure remains non -binding.
In September, the president of the ECB, Christine Lagarde, resumed these warnings, urging the legislators to act within the framework of the regulations of the crypto-active markets (Mica). A position that contrasts with that of the United States, where a Stablecoins Act, adopted in July, has established a clear regulatory framework.
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