New Delhi, India, October 3, 2025 — In a significant move to bolster security for its upcoming digital euro, the European Central Bank (ECB) has awarded a high-profile contract to Portuguese artificial intelligence startup Feedzai. This step marks an important phase in the ECB’s push to develop a secure and reliable central bank digital currency (CBDC) for the eurozone.
The ECB announced on Thursday that it has selected Feedzai, a leading AI firm known for its fraud detection solutions, to design and implement systems to monitor digital euro transactions. The contract, valued at up to €237.3 million (approximately $278.7 million), will span an initial four years with a potential extension of up to 15 years, depending on the progress and future needs of the digital euro project.
Feedzai, working in partnership with global consulting firm PwC as a subcontractor, will be responsible for building an advanced artificial intelligence-based surveillance system. This system will analyze digital wallet activity to detect suspicious or fraudulent behavior, helping payment service providers make real-time decisions about whether to approve or block transactions.
The AI model will look for deviations in user behavior, such as irregular transaction patterns or unexpected changes in usage, which could signal potential fraud or abuse. The goal is to create a robust monitoring mechanism that protects users from financial crimes while ensuring seamless and secure use of the digital euro.
In a statement, the ECB underscored the importance of such technology in maintaining public trust and reinforcing the credibility of the digital euro. Unlike privately issued payment platforms such as Visa, Mastercard, or emerging U.S.-backed stablecoins like USD Coin, the digital euro is intended to be a sovereign alternative — backed directly by the central bank.
The ECB’s collaboration with Feedzai is part of a larger initiative to establish a secure and comprehensive infrastructure for the digital euro. In total, five contracts have been awarded to technology providers working on various aspects of the currency’s ecosystem. These contracts range in value from €27.6 million to €220.7 million. Among the recipients is Capgemini, the French IT services giant, which has previously been involved in testing prototypes for the digital euro platform.
However, the ECB clarified that the awarded contracts are part of a broader framework agreement. Payments to the selected contractors will commence only if and when the digital euro receives formal approval from European lawmakers. That decision is expected around mid-2026, following continued evaluations, discussions, and public consultations.
If approved, the digital euro could become operational by 2029, offering eurozone citizens a new, central bank-issued payment method that is secure, private, and interoperable across platforms.
Feedzai’s appointment to such a critical role reflects the company’s growing prominence in the fintech sector. Headquartered in Portugal, the AI startup already handles approximately $8 trillion in transactions annually through its fraud prevention systems. Its clients include notable banks such as Novobanco in Portugal and Wio Bank in Abu Dhabi.
Coinciding with the ECB announcement, Feedzai also revealed that it had successfully raised $75 million in new investment funding. The funding round included participation from major investors such as Lince Capital, Iberis Capital, and Explorer Investments, which signals strong market confidence in the company’s potential.
The ECB’s partnership with a European startup also reinforces its intention to build technological capacity within the eurozone and reduce dependence on non-European payment systems. With rising concerns about privacy, cybersecurity, and the dominance of foreign financial tech companies, the ECB is positioning the digital euro as a European-led, secure digital payment alternative.
As global economies race to embrace digital currencies, the ECB is working carefully to ensure that its version is safe, inclusive, and resilient. The collaboration with firms like Feedzai demonstrates a clear commitment to safeguarding users while maintaining Europe’s competitive edge in the fast-evolving digital financial landscape.
The coming months will be crucial as the ECB continues to develop and test its digital euro prototype. Public trust, technological readiness, and political backing will all be critical factors determining the future of Europe’s digital currency experiment.
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