Digital euro: Deutsche Telekom and Telefónica join consortia

The central bank has taken a further step toward the digital euro. Deutsche Telekom and Spain's Telefónica are among the consortia that are to provide connectivity services for the planned digital currency.

Telecom operators as infrastructure partners

Connectivity is a basic building block for any digital payment system. Transactions have to travel reliably between banks, payment service providers, merchants and the central infrastructure. That is the role the named consortia are meant to fill for the digital euro.

The fact that two of Europe's large telecom groups are among the participants shows how much the project depends on network operators, not only on banks and payment specialists.

Why it matters

The digital euro is meant to complement cash with a digital form of central bank money. For consumers and businesses, the technical groundwork largely decides whether such a currency will be fast, available and robust in everyday use. Choosing the providers for connectivity is therefore part of the groundwork for a possible launch.

Details on the other consortia, contract terms and timelines were not part of the information available at the time of writing. Further decisions on the digital euro's design and rollout are expected to follow as the central bank continues to prepare the project.