Why Did the European Central Bank Choose Amazon to Develop Its Digital Euro

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Last Updated on September 19, 2022 by Bitfinsider

The European Central Bank (ECB) has chosen Amazon, an American multinational technology company, along with four other companies, to assist in developing user interfaces for a digital Euro.

Amazon, widely regarded as one of the world’s most powerful economic and cultural forces, will assist in the development of e-commerce payment interfaces.

The ECB has also formed alliances with Caixabank and Wordline, both of which will handle peer-to-peer online payments. Meanwhile, Nexi and EPI have been tasked with focusing on payer-initiated point-of-sale payments.

The ECB stated that the purpose of the prototyping exercise is to determine how well digital Euro technology will integrate with company-developed prototypes.

The five firms were chosen from a pool of 54 service providers, with the ECB selecting the best match for a specific capability.

This step, according to the financial institution, is part of the ongoing two-year “investigation phase” for the digital currency project, which is expected to be completed in the first quarter of 2023, when they will also publish their findings.

According to the ECB, simulated transactions will be launched as part of the exercise using front-end prototypes developed by Amazon and the other four companies. EuroSystem’s interface and back-end infrastructure will handle these transactions.

The central bank clarified that the prototypes developed with Amazon will no longer be used in the next stages of the digital Euro project.

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