Eurosystem Looks For Providers Of Payment Solutions For Digital Euro

Eurozone’s monetary authority dubbed the Eurosystem looks for providers of payment solutions for the digital Euro willing to develop solutions for it so let’s read more today in our latest cryptocurrency news today.

The plan is to carry out a prototyping exercise which is to test the transactions to the back-end developed by the regulators. In the ongoing investigation of the issuance of the digital euro currency, the Eurosystem intended to conduct an experiment among other objectives, and test and end transactions with the CBDC and the Central Bank announcing before the weekend. The authority consists of the ECB and the Central bank of the Eurozone members and looks for parties that are interested in offering the front-end prototype for the trails. The transactions will start at their front-end prototype and will be processed the interface into the back-end that is developed by the Eurosystem.

The payment service providers and banks are invited to take part as front-end providers of technical solutions designed to facilitate the digital euro payments and the deadline for the applications are May 20 the exercise is scheduled for August and could continue until the first quarter of 2023. The goal is to gather front-end providers that the Eurosystem will cooperate in the development of the user-facing prototypes and the authority will invite the participants to explain the use case for the prototype. The number of providers is up to five and will then be selected.

They will sign contracts with the financial authorities of the EU zone and will be expected to organize the prototype development in the process, the providers will share their feedback on the interface and back-end infrastructure including the data requirements to support a certain business model. The project to launch a digital version of the EU currency entered the investigation phase in October while the news came out that the commission is planning to propose a bill laying down the foundation for the currency early next year. Fabio Panetta who is a member of the ECB, stated that the bank is focusing its efforts on the digital EUR.

As recently reported, Privacy seems to be dropping down on the priority list of the ones designing the new digital euro and experts warned that the design choices made can make some privacy harder to achieve. There hasn’t been any formal policy decision about whether to issue the euro in a new format but there’s strong momentum behind the idea.