Fintech

ECB Selects AI Firm to Tackle Digital Euro Fraud Risks

The European Central Bank (ECB) has chosen Portuguese artificial intelligence firm Feedzai to design fraud detection systems for its upcoming digital euro, marking a major step toward safeguarding Europe’s future digital currency.

The ECB views the digital euro as essential for the eurozone’s financial independence, reducing reliance on U.S. payment giants like Visa and Mastercard, while also countering the rise of dollar-based stablecoins. Legislative approval for the project is still pending, with a potential launch planned for 2029.

Feedzai, in partnership with PwC, will deliver an AI-powered risk scoring model to detect unusual payment behavior and help providers decide whether to approve digital euro transactions.

The four-year contract has an estimated value of €79.1 million, capped at €237.3 million ($278.6M). In addition, four other contracts worth between €27.6 million and €220.7 million were awarded, including one to French IT firm Capgemini.

ECB board member Piero Cipollone assured: “Not a penny will be paid until the project actually starts.”

Key Highlights

Contract Value (EUR) Company Purpose
Main AI Contract Up to €237.3M (est. €79.1M) Feedzai + PwC AI fraud detection system
Additional Contracts €27.6M – €220.7M Multiple incl. Capgemini Digital euro infrastructure
Launch Target 2029 ECB Pending legislative approval

Registered in Coimbra, Portugal, Feedzai already processes around $8 trillion in payments annually for clients such as Novobanco and Abu Dhabi’s Wio Bank. The ECB says the partnership is part of a “historic step to protect the integrity of Europe’s digital money.”