The European Central Bank (ECB) has selected Portuguese AI start-up Feedzai to develop sophisticated fraud protection systems for its upcoming digital euro project. The four-year framework agreement marks a significant milestone in the ECB’s strategy to create a secure digital currency infrastructure.
In a strategic move to fortify the digital euro’s security, the European Central Bank (ECB) has chosen Feedzai, a Portuguese artificial intelligence company, to manage fraud and risk prevention. The four-year framework agreement, valued at an initial €79.1 million with a potential ceiling of €237.3 million, represents a critical step in developing the Digital Euro Service Platform (DESP).
Feedzai, based in Coimbra, Portugal, has established a strong reputation in financial crime prevention using machine learning and real-time analytics. The company currently handles approximately USD 8 trillion in payments annually, positioning it as a credible partner for the ECB’s ambitious digital currency project.
The AI-powered system will provide payment service providers (PSPs) with a fraud risk score for each digital euro transaction. PSPs will then decide whether to approve, reject, or flag the transaction based on their internal rules. Feedzai will collaborate with PwC to ensure the solution meets European privacy, security, and regulatory compliance requirements.
Nuno Sebastião, Feedzai’s CEO, emphasized the critical nature of their role: “With tens of billions of transactions expected across the Eurozone, success depends on an AI capable of adapting as fast as fraud evolves. Our job is to provide the intelligence needed to block even the most sophisticated fraud attempts.”
Strategic Context and Future Outlook
The ECB frames this investment as part of Europe’s quest for financial sovereignty, aiming to reduce dependence on non-European payment circuits and protect the Eurozone from external influences. However, the decision to outsource anti-fraud infrastructure to a private company raises questions about trust and governance.
The ECB board member Piero Cipollone stressed that “not a penny will be paid until the project is actually started”, providing flexibility while maintaining cautious oversight.
Next Steps
- The ECB will begin planning and design phases with Feedzai and other providers
- The Digital Euro Regulation is expected by mid-2026
- The potential launch window remains 2029, subject to technical and political developments
While the agreement is groundbreaking, the digital euro is not yet operational. Its implementation will depend on subsequent approval from the ECB’s Governing Council and the adoption of the Digital Euro Regulation.