ECB signs agreements with technology companies to develop digital euro

Key points:

• The ECB has signed agreements with seven companies, including Feedzai and Giesecke+Devrient, to develop a digital euro.
• The launch of CBDC in Europe is planned for 2029, subject to legislative approval.
• The digital euro should reduce Europe’s dependence on Visa, Mastercard, and dollar-pegged stablecoins.

The European Central Bank (ECB) has signed agreements with seven technology companies to develop the basic infrastructure for launching the digital euro. This is a new stage in the work on creating a central bank digital currency (CBDC). The launch is expected by 2029, subject to approval by the legislative body.

Partners include Feedzai, a company that uses artificial intelligence to detect fraud, and Giesecke+Devrient (G+D), which will lead the design and development of the Digital Euro Services Platform (DESP). DESP will include secure messaging, pseudonymization for payments, and offline transaction capabilities.

The initiative aims to establish a common mechanism for detecting and preventing fraud in CBDC online transactions, which is a requirement of the evolving Digital Euro Regulation. G+D CEO Dr. Ralph Wintergerst said the collaboration will focus on completing the project design and planning for integration under the guidance of the ECB Governing Council. The estimated value of the project is 79,1 million EUR, with a potential cap of 237,3 million EUR.

Europe’s response to the dominance of the dollar

The digital euro should reduce Europe’s dependence on American payment systems such as Visa, Mastercard, and PayPal.

US support for dollar-backed stablecoins has become particularly relevant for the ECB. On July 18, 2025, President Trump signed the GENIUS Act, establishing a federal regulatory system for stablecoins.

ECB Executive Board member Piero Cipollone noted that the spread of dollar-backed stablecoins threatens to cause an outflow of deposits from European banks. The digital euro should maintain control over Europe’s payment infrastructure.

Meanwhile, private alternatives are developing faster. In September 2025, nine major European banks announced plans to issue their own regulated euro stablecoin by mid-2026. Germany already launched EURAU in July 2025.

Source: x.com

The digital euro will work alongside cash and bank deposits, not replace them. The ECB conceived it as a public good that benefits society, not as a commercial product.