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The European Central Bank (ECB) has taken two important steps towards launching a digital euro, announcing framework agreements that cover both offline functionality and fraud prevention.
The decisions highlight the institution’s intent to ensure that any future digital currency mirrors the accessibility, privacy, and resilience of cash while embedding the safeguards needed for a digital financial ecosystem.
Building Offline Payments into the Digital Euro
ECB advances digital euro
One of the most distinctive aspects of the digital euro project is the determination to make it usable without an internet connection.
To that end, the ECB has concluded a framework agreement with a consortium led by security technology specialist Giesecke+Devrient (G+D), alongside payment processor Nexi and digital transformation firm Capgemini.
The trio emerged as the highest-ranked tenderer following the ECB’s procurement procedure for an offline solution.
The agreement calls for the design and development of an “end-to-end” capability allowing consumers and merchants across the euro area to settle transactions without third-party involvement.
Money would be stored locally on devices such as smartphones, cards, or other hardware with secure elements. Payments would then be exchanged directly between two devices, ensuring privacy and continuity of service even during outages of power or connectivity.
The ECB has long argued that offline capability is central to replicating the cash-like qualities of central bank money.
In practice, the feature is expected to give users confidence that they can always access funds and complete transactions, whether in remote areas, during emergencies, or in circumstances where connectivity is unreliable.
The partners bring complementary expertise to the project: G+D in secure digital currency infrastructure, Nexi in payments technology and point-of-sale acceptance, and Capgemini in system integration and testing.
Together, they will contribute to the development of the Digital Euro Service Platform (DESP), the overarching architecture that will deliver the new currency.
A Framework for Fraud Prevention
In parallel, the ECB has also concluded a framework agreement for the fraud prevention component of the DESP.
Feedzai, a Lisbon-based risk management technology company, was named the first-ranked tenderer, supported by PwC as subcontractor. The deal has an estimated value of €79.1m, with the possibility of rising to €237.3m depending on scope.
Feedzai’s platform will provide a centralised mechanism for detecting and preventing fraud across all digital euro transactions. For every payment — whether peer-to-peer between individuals or point-of-sale transactions with merchants — the platform will generate a fraud risk score.
This score will complement the controls of commercial payment service providers, offering a dual layer of protection against fraud.
The ECB has stressed that fraud prevention must be balanced with privacy protections. As with offline payments, transaction data will be pseudonymised and encrypted.
No central authority will be able to trace small offline transactions, preserving the anonymity associated with cash.
For larger digital transactions, however, the infrastructure will enable oversight consistent with anti-money laundering and counter-terrorism financing requirements.
Europe’s Strategic Objectives
The push to create a digital euro is part of a broader agenda to reinforce Europe’s financial sovereignty in a world where payments are dominated by non-EU providers.
The ECB has consistently emphasised the importance of reducing reliance on external players, bolstering resilience, and ensuring European citizens have access to a public digital means of payment.
Issuing a digital euro would represent the most significant monetary innovation in Europe since the introduction of the single currency in 1999.
It would extend the role of central bank money into the digital age, supporting financial inclusion while offering individuals and businesses a secure, universally accepted method of payment across the eurozone.
So…What Comes Next?
While the framework agreements set parameters for future collaboration, the ECB has made clear that concrete development work will follow only after further decisions by its Governing Council and in line with EU legislation.
The coming months will involve detailed planning between the ECB and its selected partners to design, test, and integrate the components into the DESP.
The digital euro remains several years from launch, but the recent agreements underscore momentum behind the project.
Offline functionality and robust fraud prevention are not minor technical features; they are cornerstones of trust. For the ECB, winning that trust is essential if the digital euro is to be embraced by Europe’s 440 million citizens and businesses alike.
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