The digital euro, which is to be issued and backed by the Eurosystem, will aim to complement cash, improve financial inclusion, and focus on strengthening European monetary sovereignty. The Eurosystem is the official monetary authority of the eurozone, which is described as the collective of EU member states that have adopted the euro as their currency.
The digital euro initiative is also seen as a key move to enhance the EU’s overall technological autonomy and resilience against damaging security breaches / cyber threats as well as certain technical disruptions.
The ECB is said to now be working cooperatively with Italian tech firms, Almaviva and Fabrick, in order to implement the official mobile app and the supporting infrastructure for the digital euro. This marks a key milestone in Europe’s CBDC plans.
Almaviva and Fabrick, a Sella Group entity, focused sharply on in open finance, will aim to offer an intuitive and user-friendly app developed to provide access to the digital euro across smartphones, tablets, and smartwatches.
The app will focus on providing a more frictionless user experience for all EU citizens, allowing for easier digital payments in stores, online, as well as P2P transfers.
The tech companies will also aim to introduce an open and interoperable technological framework, with SDKs and APIs, enabling European PSPs to integrate their services with the digital euro initiative. This is set to enable adoption and foster tech advancements across the EU.
The contract that has been given to Almaviva and Fabrick covers an initial four-year term, with extensions of 10 years to be taken into consideration at a later date.
The initial 2-year period is expected to focus on development as well as phased implementations, and this is to be followed by stabilisation efforts and ensuring operational readiness. According to the latest update, the framework agreement is valued at about €153 million.