ECB Taps AI Innovation to Prevent Fraud in Digital Euro Transactions

Published: 03 Oct 2025

Author: Precedence Research

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The European Central Bank has announced its strategic collaboration and has picked a Portuguese-based AI start-up focused on preventing digital fraud for its planned digital currency in euros. This step is an initiative to free the Euro from the financial autonomy of the United States and is considered a key project by the European Central Bank. This contract is worth USD 278.69 million with Feedzai, underscoring its significance for the European economy in strengthening its presence on a global stage, particularly in terms of financial freedom and major investments in several key sectors.

According to this contract, Feedzai, along with its subcontractor PwC, will provide an Artificial Intelligence model that is highly responsive in identifying potential threats arising from transactions based on consumer data. Any deviation from this model will be quickly noted, and an alert will be sent. All this effort is aimed at facilitating payment service providers in deciding whether to initiate a transaction in digital euros, ultimately an exchange between an electronic wallet supported by the European Central Bank. This four-year agreement also includes an option to extend it for an additional 15 years. It has an estimated value of nearly €79.1 million, with a capital of €237.3 million.

Moreover, there are four contracts in the pipeline worth between €27.6 million and €220.7 million, attached to various companies, including the French IT consulting firm Capgemini. However, the ECB won't pay these companies until the project starts, as per the expected dates, according to the framework.

The central bank is still awaiting the completion of the legitimate approval process for its digital euro project, which it has pitched alongside Visa and Mastercard’s assertions, as well as the U.S. president’s active promotion of stablecoins for the dollar. They are still hoping to gain the go-ahead around the middle of next year, aiming to introduce the digital currency by 2029. Feedzai, registered in Portugal, claims to process USD 8 trillion worth of payments annually for various clients. It includes Portuguese bank Novobanco and Wio bank of Abu Dhabi. They further announced funding of USD 75 million, gained from Lince Capital, Iberis Capital, and other investors, including Explorers.