Digital Euro Moves Closer as ECB Awards Key Technology Contracts

According to the ECB, the step follows a tendering process launched on 3 January 2024, where companies were invited to propose solutions for five essential domains of the digital euro ecosystem. On 2 October 2025, the ECB confirmed that framework agreements have now been signed with firms in each domain.

The selected domains cover alias lookup, risk and fraud management, the development of applications and software kits, offline functionality, and the secure exchange of payment information. Each domain has been assigned a first-rank provider and, in most cases, a fallback supplier. In the alias lookup category, Sapient GmbH and Tremend Software Consulting S.R.L were chosen as primary providers, with equensWorldline acting as backup. For risk and fraud management, Feedzai secured the first-rank position and Capgemini Deutschland the fallback.

In the app and SDK category, Almaviva SpA in partnership with Fabrick SpA, along with Sapient and Tremend, were selected. Offline capability was awarded to Giesecke+Devrient, with the ECB noting that a second provider would be announced later. For secure exchange of payment information, Senacor FCS holds the primary role while equensWorldline will serve as the alternative. The ECB stressed that these are framework agreements only and do not yet involve payments. The scope can be adjusted depending on the eventual legislation governing the digital euro.

In a recent address to the European Parliament, ECB Executive Board member Piero Cipollone framed the digital euro not merely as a technological innovation but as a public good, one designed to strengthen the eurozone’s resilience and ensure payments remain viable during crises. He warned of vulnerabilities in Europe’s payment infrastructure, citing past disruptions such as sabotage of undersea cables and regional power or network blackouts, and described how the ECB plans to build in fault-tolerance by distributing transaction servers across multiple regions and providing a fallback payments app.

Cipollone also emphasized inclusion: the digital euro must remain accessible to all citizens, including those with disabilities or limited digital literacy. To that end, he proposed adaptive user interfaces (e.g. voice commands, large-font displays) and co-design with vulnerable populations, and insisted that offline functionality and provider switching must be baked into the system to ensure continuity even when conventional digital channels fail.

The ECB has made clear that the signing of agreements is not a commitment to issue the digital euro. A decision on issuance will depend on the adoption of the Digital Euro Regulation by European lawmakers and a subsequent decision by the ECB’s Governing Council. Nonetheless, the selection of providers is designed to ensure that the infrastructure can be developed quickly should approval be granted. Requests for services will go first to the top-ranked provider in each category, with the fallback company engaged only if the primary supplier cannot deliver. This layered structure reflects a design for resilience but will also require careful coordination to maintain interoperability.

The announcement highlights several challenges that remain. One of the most pressing is ensuring interoperability and technical standards across the eurozone, since the digital euro must work across banks, payment providers, merchants, and end users. Another is developing robust offline capability. Providing secure payments without network connectivity is technically difficult, and with only one offline provider announced so far, the ECB still has decisions to make. Risk and fraud mitigation is also central, given the digital euro would be a direct target for illicit use and cyberattacks. Selecting specialized firms early is intended to address this need.

There is also the challenge of designing flexibility into the system while regulatory details are still being finalized, since legislation could require changes to scope or functionality. In addition, financial accountability and oversight will become crucial once implementation begins, with later phases expected to include cost management, security audits, and performance reviews.

If ultimately implemented, the digital euro would stand alongside other central bank digital currencies being developed around the world, including China’s e-CNY and pilot projects in the United States and Africa. By selecting providers well in advance of a final decision, the ECB is signaling its readiness to move quickly and to compete in the global CBDC landscape. The list of firms provides market participants with a clearer picture of who may play leading roles in the digital euro infrastructure. By publishing the names, the ECB also aims to enhance transparency and invite scrutiny from policymakers, financial institutions, and the public.

The next steps are clear. The Digital Euro Regulation must first be adopted by the European Parliament and Council. Only then can the ECB’s Governing Council formally decide to move forward. If issuance is approved, the framework agreements will allow rapid mobilization of technical work, pilots, and integration with existing systems. Future stages are expected to involve pilot testing, progressive rollouts, user trials, and continued security assessment. Policymakers and citizens alike will pay close attention to issues of privacy, data protection, digital identity, resilience, and costs to end users.

The ECB’s selection of service providers is not a final decision on the digital euro itself, but it represents a foundation for what could become one of the most significant shifts in European monetary infrastructure in decades. By establishing a layered vendor approach and emphasizing flexibility under regulatory uncertainty, the central bank has laid the groundwork for a system that could, if given the green light, serve as a model for central bank digital currency development worldwide.