current position:Home>The European Central Bank and 5 institutions including Amazon to develop a digital euro prototype

The European Central Bank and 5 institutions including Amazon to develop a digital euro prototype

2022-09-21 14:41:29Blockchain Knight

The ECB builds prototypes from different use cases to explore digital payment models.

One of the most important use cases for Crypto is enabling instant cross-border payments.

This is why the Central Bank Digital Currency (CBDC) project has attracted hundreds of jurisdictions around the world, with some countries such as China already linking the technology to their domestic central banks.

Currently, the European Central Bank (ECB) is in the process of investigating a CBDC and has selected five companies to build and test prototypes of the digital euro.

The five companies are e-commerce giant Amazon, Italian famous banking center Nexi, Spanish multinational financial service CaixaBank, >European Payment Institution (EPI) and French payment channel Worldline.

Out of 50 front-end development companies that responded to the ECB's April call, the ECB chose these five technology companies.

Each company will build a different prototype for the digital euro use case.

It is worth noting that the ECB stated that none of the above-mentioned companies will use the developed interface after testing and will choose to re-develop for integration.

Although the ECB joins the ranks of developed countries that benefit from this technology, it may be nearly five years before a digital euro hits the market.

Although the investigation phase has begun, the European Central Bank has not yet officially decided whether to launch a central bank digital currency.

The investigation phase will end in October 2023, and government officials hope to complete the phased tasks in the first quarter of 2023.

A tech organization based in Frankfurt, the European financial center, expressed its views on the digital euro prototype, saying:

The purpose of this prototyping is to test how the current state of the technology behind the digital euro integrates with the prototype developed by the company.”

Payments company Worldline will develop infrastructure for digital euro transfers between individuals.

And CiaxaBank will develop a mobile app to test digital transfers of euros to banks and other public payment channels.

Meanwhile, Nexi Group has developed a strong interest in projects to develop prototypes of digital payment transfers at the retail level.And the European Payments Association will follow similar digital payment technology developments.

Nexi Chief Strategy Officer Roberto Catanzaro added in a statement:

“We look forward to bringing Nexi’s performance in digital payments and, more specifically, the best-known technology in business solutions to Europe to drive innovation in European payments.”

Amazon VP expresses intent on CBDC in an email:

“The future of CBDC will be built on new technologies that enable modern, fast and cheap payments.”

Global reaction to the potential of central bank digital currencies and the development of certain regimes, attracts ECB officials to explore if or when the central bank could issue a digital form of the euro.

In September 2021, the European Central Bank formed a series of panels to review digital payments technology.

The groups concluded that both online marketing and the use of digital currency in traditional stores will be a key feature of the euro.

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