The European Central Bank (ECB) has entered into a framework agreement with Feedzai, the top-ranked tenderer, to develop the central fraud detection and prevention system for the digital euro.

This agreement, focused on risk and fraud management, is estimated to be worth approximately EUR 79.1 million and could reach up to EUR 237.3 million. In collaboration with PxC, Feedzai will provide a centralized fraud prevention solution that aligns with EU security, privacy, and data protection regulations.

A secure digital currency

Feedzai is an advanced financial crime prevention platform utilizing AI technology to combat fraud. The company’s contribution includes supplying real-time fraud risk assessments for transactions, which PSPs can integrate into their own risk management systems.

The ECB emphasizes that the digital euro is a public good, designed to be as secure and reliable as physical cash but tailored for modern digital environments. This initiative seeks to maintain central bank money in the digital age, diminish dependence on non-EU payment solutions, and strengthen Europe’s financial independence and inclusion.

Privacy is paramount in this endeavor, with the ECB stating that digital euro transactions will include robust measures such as pseudonymization and encryption. The central bank also aims for offline, cash-like payments to be possible for smaller transactions. By promoting these features, the ECB hopes to bolster Europe’s resilience, inclusivity, and technological autonomy, ensuring it meets the needs of citizens and businesses across the euro area.