ECB's Cash-Like Digital Euro Aims to Boost Inclusion and Sovereignty

The European Central Bank (ECB) has selected a consortium of technology firms to develop critical components of the digital euro, focusing on offline payment capabilities and fraud prevention. The initiative, announced in October 2025, marks a significant step in the ECB's multiyear effort to design a central bank digital currency (CBDC) that complements cash and enhances financial inclusion. The selected partners include Giesecke+Devrient (G+D), Nexi, and Capgemini for the offline solution, while Feedzai and PwC were chosen for fraud prevention systems. These contracts, part of a €1.16 billion procurement process, aim to ensure the digital euro's privacy, resilience, and security, with a target launch date of 2029 .

The ECB's framework agreement for the offline solution, led by G+D, Nexi, and Capgemini, emphasizes the ability to conduct transactions without internet connectivity or third-party intermediaries. This functionality, described as a "cash-like" feature, allows users to store digital euro funds directly on secure devices such as smartphones or cards. Payments are settled locally between devices, preserving privacy by avoiding the recording of transaction details by banks or central authorities. The ECB highlighted that offline capability is essential for maintaining accessibility in remote areas, during emergencies, or when connectivity is unreliable . The consortium's expertise spans secure currency infrastructure (G+D), payment technology (Nexi), and system integration (Capgemini), aligning with the ECB's goal of creating a universally accessible digital currency .

Complementing the offline solution, the fraud prevention framework led by Feedzai and PwC introduces a centralized system to detect and mitigate risks across all digital euro transactions. The platform assigns a fraud risk score to each transaction, offering a dual-layer defense alongside existing commercial payment safeguards. While small offline transactions will remain pseudonymized and untraceable, larger transactions will adhere to anti-money laundering (AML) and counter-terrorism financing (CTF) standards. This balance between privacy and oversight is critical for maintaining public trust, the ECB noted . The fraud prevention component, valued at up to €237.3 million, underscores the ECB's commitment to addressing security concerns without compromising user anonymity .

The ECB's progress follows a broader strategic agenda to reduce reliance on non-European payment systems and reinforce financial sovereignty. A digital euro is intended to provide a public, sovereign digital alternative to private stablecoins and foreign payment platforms. The initiative also seeks to streamline cross-border transactions within the Eurozone and support innovation in financial services, such as conditional payments and integrated e-receipts, which were tested in earlier experimentation phases ECB presents findings from digital euro innovation platform and ...^[1]. However, the project remains contingent on legislative approval, with the ECB aiming for finalized rules by mid-2026 to enable a 2029 launch Digital Euro Could Launch By 2029, Says ECB’s Cipollone^[4]ECB Selects G+D, Nexi & Capgemini for Digital Euro Offline …^[5]. ECB Executive Board member Piero Cipollone emphasized that harmonized standards and collaboration with market participants are vital for scalability and usability ECB presents findings from digital euro innovation platform and ...^[1].

Despite momentum, the digital euro faces challenges, including opposition from banks and lawmakers concerned about financial stability and commercial bank competition. Critics argue that widespread adoption of a digital euro could drain deposits from traditional banks, though the ECB maintains that the currency will coexist with cash and existing payment methods. The ECB's roadmap also includes infrastructure development and public consultations to refine the digital euro's design based on user needs Digital Euro by 2029, despite opposition « Euro Weekly News^[2]Digital Euro Could Launch By 2029, Says ECB’s Cipollone^[4]. As the project advances, the ECB will continue engaging stakeholders to address technical, legal, and social considerations ahead of a potential rollout.