The European Central Bank (ECB) has created a framework agreement with Feedzai as the first-ranked tenderer to provide the central fraud detection and prevention mechanism for the digital euro.
The framework agreement for the risk and fraud management component has an estimated value of EUR 79.1 million and a maximum value of EUR 237.3 million. In partnership with PxC, Feedzai will offer a central fraud detection and prevention mechanism to ensure compliance with EU security, privacy, and data protection laws.
A safe digital currency
Feedzai is an end-to-end financial crime prevention platform, protecting individuals and payments with AI-native tools that fight crime. Its role is to contribute to safeguarding transactions from fraud by enriching PSPs’ own risk management with insights derived from a central infrastructure-level view. For every transaction, the company will provide a fraud risk score that PSPs will use alongside their own controls when deciding whether to approve or decline a payment.
The ECB underlines that the digital euro is being designed as a public good, a central bank-backed currency that is as reliable as cash but adapted for the digital age. It aims to preserve the role of central bank money in an increasingly digital world, reduce reliance on non-EU payment providers, and reinforce Europe’s strategic autonomy and financial inclusion.
As privacy remains key to this initiative, the ECB stated that the digital euro transaction will include strong safeguards, such as pseudonymisation and encryption, and will allow for offline, cash-like payments for small amounts. The central bank hopes that the digital euro will contribute to Europe’s resilience, inclusion, and technological sovereignty, as it was designed to meet the needs of euro area citizens and businesses. The move is closely followed by other central banks a part of a wider international discussion on the future of money.
