ECB Chooses Amazon and 4 Other Companies to Help Develop Digital Euro

Five companies have been selected by the European Central Bank (ECB), to develop user interfaces for a new digital euro. Each company will collaborate with the ECB to develop a specific use case for the digital euro. Amazon was chosen to concentrate on e-commerce payments.

Five Companies and the ECB collaborate on Digital Euro

Friday's announcement by the European Central Bank (ECB), that five companies will be working together "to develop potential user interfaces" to a digital euro, was made public.

The ECB explained it:

This prototyping exercise aims to determine how well the technology behind the digital euro integrates into prototypes created by companies.

Each company selected will work with the ECB to focus on a specific use case for a digital euro.

Worldline and Caixabank will be focusing on peer-to–peer online payments. Nexi and EPI will be focusing on point-of sale payments initiated by the payer. Amazon will be focusing on ecommerce payments.

The European central bank explained that the five chosen companies were drawn from 54 front-end providers and added that they most closely matched the requirements of the assigned use case.

The ECB stressed:

Prototyping is an essential part of the ongoing investigation phase for the digital euro project. It will take place over two years. It is expected that it will be completed by the first quarter 2023, when the ECB also will publish its findings.

The ECB stated that simulated transactions would be initiated by using front-end prototypes created by five companies, and processed through the Eurosystem’s interface and backend infrastructure. "The prototypes will not be re-used in any subsequent phases of digital euro project."

In October last year, the ECB officially began investigating what its central bank digital currencies (CBDC) might look like. The investigation phase is expected to last approximately two years. Christine Lagarde, President of the ECB, stated in February that a virtual euro would not replace cash but complement it. She explained that a digital euro would allow you to choose how to pay, and make it simpler to do so. This would contribute to accessibility and inclusion.

What do you think of the ECB selecting these five companies as developers for a user interface for a digital Euro? Comment below.

By: Kevin Helms
Title: ECB Chooses Amazon and 4 Other Companies to Help Develop Digital Euro
Sourced From:
Published Date: Sun, 18 Sep 2022 03:30:15 +0000

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