Amazon contributes to EU digital euro prototype tests

Important Takeaway

  • The European Central Bank (ECB) has selected five companies to help test the upcoming digital euro.
  • Each participating company will create a prototype interface that will be used to process simulated transactions.
  • Five companies are participating in the test: Amazon, CaixaBank, Worldline, European Payments Initiative and Nexi.

The European Central Bank (EBC) has partnered with five companies, including Amazon, to test its own digital euro.

digital euro test

Amazon is one of five companies to test the digital euro.

According to an announcement by the European Central Bank on September 15, five companies will collaborate to develop prototype user interfaces related to the planned upcoming digital euro. The exercise will use simulation parameters to test whether the digital euro integrates effectively with these interfaces.

The most prominent participant is Amazon, which will create an interface for handling e-commerce payments. It is not clear if the company will produce a variant of its official storefront or create an entirely new one.

Today’s news does not indicate that Amazon plans to accept a digital euro if the European Central Bank launches one.

Other companies involved in the project are Spanish bank CaixaBank and European payment processor Worldline. These companies will create interfaces for online and offline peer-to-peer payments, respectively.

Finally, the European Payments Initiative (EPI) and payment technology company Nexi will provide interfaces for point-of-sale transactions. The EPI solution will focus on the transactions initiated by the payer, while the Nexis will focus on the transactions initiated by the payee.

These five companies were selected from among 54 companies that responded to an early call for expressions of interest.

Despite each company’s high reputation, their work may have little effect in the long run. “There are no plans to reuse the prototypes in the later stages of the Digital Euro project,” the European Central Bank said in today’s announcement.

The results of the experiment will be published in 2023.

Recent reports indicate that a legal framework for a digital euro will also be introduced for the European Union in 2023. Some estimates suggest that a digital euro could be launched in 2025.

Disclosure: At the time of writing, the author of this article owns BTC, ETH, and other cryptocurrencies.

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