Telefónica and Minsait win ECB contract to build digital euro communications network

Two contractors for the digital euro network

The European Central Bank (ECB) has selected Telefónica and Minsait, the technology company of Indra Group, as one of two contractors to deploy the communications and security infrastructure on which the future digital euro will run. The two firms formed a consortium to design and roll out networks at the ECB that combine communications with the security services needed so that users and businesses can exchange information and reach services and applications.

The infrastructure will securely link the public and private intermediaries in the digital currency, including banks, fintechs and payment service providers (PSPs). The contract takes effect on 3 May 2027 and runs for 10 years. The second contract went to a consortium of Nexi Payments and Deutsche Telekom Business Solutions, which is already in force and initially covers the needs of the pilot programme.

What the work covers

The contract separates two connectivity needs. The first is linking external participants, such as a bank that must exchange information over a protected connection, with the platform. The second is letting the platform's own components communicate with each other, since the platform may spread its systems across different data centres. The contract covers both.

The Telefónica and Minsait proposal has an international dimension and a distributed infrastructure. It combines communications capabilities, data centres, cybersecurity, operations and technology integration. Telefónica and Minsait present the project as part of the technology needed for a digital euro that would work as a digital payment method alongside cash and be accepted across the euro area.

Company statements

Borja Ochoa, president of Telefónica Spain and chief executive of its B2B business, said the project lets the telecom company meet its goal of being the best route for citizens and companies into digital technologies. He described the deal as a significant step in Telefónica's strategy.

“We are taking a very significant step in our strategy to help build a more digital, secure and sovereign Europe.”

Luis Fernández, chief executive of Minsait, called the digital euro one of the most transformative technology and finance projects Europe is tackling. He said Minsait sees its role as putting its technology capacity in critical systems at the service of a more integrated, secure and sovereign financial ecosystem.

“The digital euro is one of the most transformative technology and financial projects Europe is tackling.”

Timeline and what comes next

The ECB aims to be ready for a possible first issuance of the digital euro in 2029, provided the necessary European legislation is approved in time. The digital euro would be an electronic form of cash issued and backed by the Eurosystem. Its design covers payments in shops, online purchases and transfers between individuals, both with and without an internet connection. It is not a cryptocurrency and is not intended to replace banknotes and coins.