Eurosystem, the eurozone’s monetary authority, has said it is in the process of searching for financial companies that can help create front-end solutions for a digital euro. The idea is to help roll out an exercise for “prototyping” transactions for the back-end created by the regulator.
Eurosystem to Partner with Front-End Provider for Its Digital Euro Project
As the focus on the possible issuance of digital euro continues, Eurosystem is racing ahead and wants to run an experiment to achieve a number of goals, one of them being to test the end-to-end transactions with the central bank digital currency (CBDC), announced the European Central Bank.
The authority, which comprises the central banks from all eurozone and ECB, wants to run trials on the front-end with the interface linking to the back-end of the developed Eurosystem financial system. Banks, payment service providers, and other relevant companies have been invited, with the application’s deadline lapsing on 20th May. However, the prototyping exercise will start in August 2022 and extend into the first quarter of 2023.
Five Developers to Help to Develop User-Face Prototypes
The ultimate goal is to identify a pool of front-end developers that Eurosystem will work with to create the desired user-facing models. The interested participants will be expected to explain their use cases, and a few, about five, will be selected for the project.
Then, they will sign contracts with all financial authorities in the eurozone before proceeding with organizing the prototype development. As they work on the user-facing, they will be able to share feedback about the back-end infrastructure, including data support for business.
The project for the digital version of the common European currency’s digital version got to the investigation phase in October 2021. By February 2022, the EU Commission released the news that it is proposing to set out a legal foundation for digital currency starting from 2023. According to Fabio Panetta, one of the Executive Board members of the ECB, the bank is directing its efforts into creating the digital euro.