The European Central Bank finalizes technical cooperation on the digital euro, signing framework agreements with seven companies.

The European Central Bank officially partners with technology partners to launch the construction of the digital euro, aiming for a release in 2029, amidst intertwining regulatory differences between Europe and the US on stablecoins, drawing market attention. (Background: The EU reportedly imposed a "€2.95 billion antitrust fine" on Google, marking the fourth penalty for the company in nearly a decade.) (Additional context: The European Securities and Markets Authority warned that "tokenized stocks" are too risky: digital certificates lack shareholder rights; will this hinder innovation in Taiwan?) On October 2, 2025, the European Central Bank (ECB) announced that it had signed framework agreements with more than seven technology companies to fully initiate the construction of the digital euro's core infrastructure, laying the critical technical and governance foundations for a potential issuance as early as mid-2029. This development signifies that the eurozone is officially moving from concept validation to substantial development, and it reignites the global central bank digital currency (CBDC) race. Infrastructure enters the construction phase According to the ECB announcement, the scope of this cooperation covers multiple modules including anti-fraud, offline payments, and platform integration. The Portuguese company Feedzai will enhance fraud detection and risk management using AI, while the German security technology firm Giesecke+Devrient will focus on offline payment solutions. The total contract amount is estimated to be between €79.1 million and €237.3 million, but as of now, it remains a framework agreement, with actual payments to commence only after the "Digital Euro Regulation" is legislated and approved by the management committee. Public asset positioning and timeline The ECB positions the digital euro as "a digital extension of cash," intended to supplement rather than replace physical cash, while also reducing the EU's reliance on foreign payment services. Official planning indicates that after a two-year preparation period starting at the end of 2023, it is expected to achieve consensus among member states by the end of 2025, complete legislation by 2026, and officially issue by 2029. Key design focuses include privacy protection, offline payments, fraud prevention, and a "pseudonym query" function, allowing users to transfer money without knowing the recipient's bank details. However, achieving a balance between performance, privacy, and regulation remains the biggest test over the next four years. Regulatory orientation and stablecoin discrepancies While promoting sovereign digital currencies, the ECB takes a notably conservative stance on private stablecoins. ECB President Christine Lagarde pointed out in September that "law enforcement and legislative sectors need to address the financial stability risks posed by stablecoins early on." The European Systemic Risk Board (ESRB) further recommends banning certain jointly issued stablecoins. In contrast, US President Trump signed a nationwide stablecoin bill in July this year, providing a clear operational framework for related businesses. The starkly different regulatory paths between Europe and the US highlight the trade-offs each economy faces between financial innovation and risk management, leading to increased uncertainty in the future of cross-border digital asset flows. Long-term impact and market observation If the digital euro goes live as scheduled, the first affected will be the retail payment ecosystem in the eurozone. The central bank's holding limit may be set at €3,000 to €4,000 per person to mitigate the risk of large-scale deposit transfers. For the banking sector, the structure of deposits and profitability models will inevitably need to be adjusted; for consumers, the trust in balancing convenience and privacy will influence adoption speed. As the euro accounts for the second-largest share in global forex reserves after the dollar, the technological path and governance model of the digital euro will also serve as an important reference for other central banks designing CBDCs. The European Central Bank has already taken a crucial step, but whether it can deliver on time in 2029 will depend on legislative progress, technological testing results, and the accumulation of public trust. As stablecoins and various national CBDC initiatives advance simultaneously, the global digital financial landscape will likely continue to evolve over the next four years. Whether the digital euro can bring greater autonomy to Europe and find a balance between privacy and innovation remains to be verified by the market and regulators jointly. Related reports Financial Times: The EU's digital euro considers operating on public blockchains like Ethereum and Solana, shifting to a public and transparent ledger. The US and EU finalize trade details: a 15% tariff on cars and semiconductors, with the EU set to purchase $750 billion worth of energy products from the US. Deutsche Bank's "EURAU" euro stablecoin goes live: certified by both MiCA and Germany, will it rewrite the European payment landscape? This article entitled "European Central Bank Finalizes Digital Euro Technical Cooperation, Signs Framework Agreements with Seven Companies" was first published in BlockTempo, a leading blockchain news media outlet.