ECB Makes Progress on Digital Euro, But Launch Still Years Away
The European Central Bank (ECB) has made significant strides in planning for the digital euro. Set to launch in 2029, it will be accessible via an ECB wallet app. However, preparations have been criticized as slow, and some European banks prefer existing payment methods like Wero.
The ECB has finalized tendering for five key sub-components of the digital euro. These include alias lookup, risk and fraud management, app and SDK development, secure payment information exchange, and offline payment technology. Companies like Sapient GmbH, Tremend Software Consulting, Feedzai, Almaviva SpA, and Giesecke+Devrient have been selected for these tasks. Despite these developments, work on the digital euro's development has not yet begun, and no funding has been disbursed.
The digital euro aims to counter the influence of private, predominantly US bank-based digital payment service providers. However, some European banks prefer promoting Wero, an existing payment method, instead. Legislation for the digital euro is still in progress, and a final decision on its introduction has not been made. Hessian Savings Bank President Stefan Reuss has criticized the slow preparation as 'colossal'. Framework agreements for the digital euro's development have been signed, but the launch is not expected until 2029.
The digital euro, planned to launch in 2029, is a significant project for the ECB. Key components have been tendered, and companies selected. However, development has not yet begun, and legislation is still in progress. Some European banks prefer existing payment methods, and the slow preparation has drawn criticism. The digital euro's future remains uncertain, with a final decision pending.
