Central Bank Lays Groundwork for the Digital Euro

Two networks for the digital euro

The ECB chose a team led by Italy's Nexi and Germany's Deutsche Telekom to run key network services. It chose a second team, Spain's Telefónica together with Indra's subsidiary Minsait, as another independent network provider. Both teams will get a 10-year contract. The network connects the data centers of the future platform for digital euro services and gives banks and payment firms secure access to it.

Key facts

• Both teams get a 10-year contract.
• The ECB picked two separate network providers so that one company does not control the link.
• In October 2025, the ECB also signed framework agreements for five more parts of the system, including offline payments and fraud protection.
• The ECB wants to launch the digital euro in 2029, with a pilot project starting in 2027.

What is the digital euro?

The digital euro is a planned digital form of the euro. It would add to cash, not replace it. European central banks want it so they can offer an alternative to large US payment companies. The plan still needs a legal framework. The European Parliament, the Council and the European Commission have been negotiating the Commission's draft law since July.

Why it matters

The digital euro would give Europe its own way to pay, rather than relying on US companies. Using two network providers is meant to keep the system running if one fails and to avoid depending on a single supplier. The project still depends on the law being passed, so the timeline could change.

What to watch

• Whether the EU passes the law for the digital euro.
• When the 2027 pilot project starts.
• How the network and other parts of the system are built and tested before the planned 2029 launch.