In a strategic move to secure the future of the eurozone’s digital currency, the European Central Bank (ECB) has selected Portuguese AI firm Feedzai to develop a fraud detection system for the upcoming digital euro. The contract, which could reach a value of €237.3 million (approximately $279 million), underscores the ECB’s push for financial autonomy and a secure digital payments ecosystem.
Feedzai, in partnership with PwC, will build an artificial intelligence model capable of evaluating digital euro transactions for potential fraud. By analysing deviations from a user’s typical behaviour, history, and interactions, the system will help payment service providers assess whether a transaction should be approved or flagged.
Fighting Fraud in the Age of Digital Currency
The ECB’s partnership with Feedzai is part of a broader initiative to address growing concerns about fraud and cybercrime as digital currencies gain traction. The AI-driven scoring model will be embedded in the infrastructure of the digital euro, which functions as an electronic alternative to cash, with central bank backing.
This four-year agreement includes an option to extend for up to 15 years, with a base value of €79.1 million and a ceiling of €237.3 million. The contract is one of several framework deals the ECB awarded this week to support the long-term implementation of the digital euro, with other vendors including French IT consultancy Capgemini.
Feedzai’s Role in Eurozone Financial Security
Founded in Portugal, Feedzai processes over $8 trillion in global payments annually for major financial institutions such as Novobanco and Wio Bank. The company’s experience in high-volume fraud detection makes it a key player in the ECB’s plan to embed AI into the core of its future currency infrastructure.
On the same day the ECB announced the contract, Feedzai also revealed it had raised $75 million in fresh funding from investors including Lince Capital, Iberis Capital, and Explorer Investments — further cementing its role as a growing force in the global fintech landscape.
Digital Euro Launch Still Awaits Legislative Approval
While the technical groundwork is being laid, the ECB’s digital euro remains in the pre-launch phase pending legislative approval. The central bank envisions the digital euro as a way to reduce dependency on private payment platforms like Visa and Mastercard, and as a counter to foreign-backed stablecoins.
Officials hope to receive the green light by mid-2025, with a formal rollout targeted for 2029.
