ECB selects Telefónica and Indra for secure digital euro infrastructure

The European Central Bank has selected Telefónica and Minsait, the technology company of Indra Group, as one of two contractors to deploy secure communications infrastructure for the future digital euro. The Spanish companies formed a consortium to design and deploy networks and adjacent solutions that integrate communications with necessary security services. Their work will securely interconnect the ecosystem of public and private intermediaries participating in the digital currency, including banks, fintechs, and payment service providers.

The contract with the Spanish companies will enter into force on May 3, 2027, and will last ten years. The ECB also chose the consortium formed by Nexi Payments and Deutsche Telekom Business Solutions, whose contract is already in force and will initially cover the needs of the pilot program.

“We are taking a very relevant step in our strategy to contribute to a more digital, secure, and sovereign Europe, because the digital euro will require a robust, resilient, and protected communications infrastructure.”

The digital euro would be an electronic version of cash issued and backed by the Eurosystem, unlike money deposited in a bank used for card payments. Its design contemplates payments in stores, online purchases, and transfers between individuals, both online and offline. It would not be a cryptocurrency and is not intended to replace banknotes and coins.

The proposal combines communications capabilities, data centers, cybersecurity, operation, and technological integration with an international dimension and distributed infrastructure. Borja Ochoa, president of Telefónica Spain and B2B general director, said the project helps citizens and companies access digital technologies.

Luis Fernández, general director of Minsait, called the digital euro one of Europe's most transformative technological and financial projects. He said participating means putting Minsait's technological capacity in critical systems at the service of a more integrated, secure, and sovereign financial ecosystem.