ECB Picks Partners to Shape the Digital Euro
The European Central Bank (ECB) has reached agreements with seven technology providers as part of its preparation phase for a potential digital euro rollout. The announcement, made Thursday, confirms that companies such as Feedzai, specializing in AI-powered fraud detection, and Giesecke+Devrient (G+D), a leading security technology firm, will play central roles in building infrastructure for the CBDC.
According to the ECB, the selected firms will work on critical elements such as fraud prevention, secure data exchange, and alias lookup features, which would allow users to send and receive payments without needing detailed banking information.
Digital Euro Could Arrive in 2029
The ECB first began exploring a digital euro in 2021 and entered its official preparation phase in late 2023. While no final launch decision has been made, the central bank suggested that the earliest possible debut could come in 2029, provided the Digital Euro Regulation is approved.
The ECB stressed that these framework agreements “do not involve any payment at this stage” and are designed to ensure flexibility as legislation evolves. The Governing Council will determine the next phase based on regulatory developments.
The planned offline payments feature, overseen by Giesecke+Devrient, is particularly notable, as it would allow consumers to transact without requiring internet connectivity — a potential game-changer for adoption.
Why Europe Wants Its Own Digital Currency
Officials in Brussels and Frankfurt see the digital euro as a way to reduce reliance on U.S. dollar-pegged stablecoins and protect the EU’s financial sovereignty. The euro-backed CBDC would aim to provide instant, low-cost payments, enhance financial inclusion, and act as a safeguard against private stablecoins that could dominate the payments landscape.
Stablecoin Concerns Remain Front and Center
The ECB’s move comes as European regulators continue to sound alarms about the growing role of stablecoins in local markets. ECB President Christine Lagarde recently urged lawmakers to act swiftly to limit risks from jointly issued stablecoins, particularly those outside EU control.
The European Systemic Risk Board also signaled support for tighter rules, reportedly recommending a ban on certain non-EU stablecoins to ensure they don’t undermine financial stability.
This stance stands in stark contrast to the United States, where President Donald Trump signed a stablecoin bill into law in July 2025, granting a regulatory framework widely seen as favorable to issuers.
A Long Road Ahead
Even as the ECB advances its partnerships, a full launch remains years away. ECB board member Piero Cipollone recently suggested that 2029 is the earliest realistic timeline, despite technical readiness being expected by late 2025. That timeline depends heavily on how fast the European Parliament, Council, and Commission move to finalize the required legislation.
For now, the ECB is setting the stage — but the real question is whether the digital euro will arrive quickly enough to challenge the dominance of U.S. dollar stablecoins.
