Five calls for applications have been issued by the European Central Bank (ECB) to firms looking to develop services around a possible digital euro. Development of offline payments will receive more than half of the $1.3 billion contract budget. Up to 1.2 billion euros ($1.3 billion) will be given by the European Central Bank (ECB) to prospective contractors for a variety of characteristics, including risk management, information security, and user applications. This sum has been set aside for the offline payments service over half.
As almost 100 economies globally ponder releasing a central bank digital currency (CBDC), the 27-nation European Union is demonstrating a particular interest in getting ready for one. The executive branch of the EU has been considering the possibility of issuing a digital version of the euro for the past few years, and in 2023 it is expected to propose laws for the digital currency. The demands for suppliers imply that legislative plans may be placing pressure on the bank to deliver, despite ECB officials’ denials that working on a digital euro implies a pledge to issue one.
One of the biggest obstacles to the implementation of CBDCs is thought to be enabling offline payment methods. Two digital euros are being planned by the ECB for retail payments, one of which will be used just for offline transactions and offline holdings. It could be difficult to create a user-friendly product that supports both versions. Though it’s unclear who the ECB would pick to develop these services, it might go with established European financial institutions.