ECB picks Telefónica and Indra's Minsait for digital euro network

The European Central Bank has selected a consortium of Telefónica and Minsait, the technology arm of Indra Group, to deploy and operate the secure communications infrastructure that will link the digital euro platform with banks and other payment service providers. The contract starts on 3 May 2027 and runs for ten years.

The ECB has also chosen a second consortium, made up of Nexi Payments and Deutsche Telekom Business Solutions. Its contract is already in force and will initially cover the needs of the pilot programme.

What the Spanish consortium will build

The award covers two connectivity needs: connecting external participants such as banks to the platform, and allowing the platform's own components to communicate across different data centres.

According to the companies, Telefónica will contribute through Telefónica Global Solutions and Telefónica Tech, with a private MPLS network, SD-WAN solutions to link sites and cybersecurity services. Minsait will provide tools to integrate applications and systems via APIs, plus digital identity solutions and electronic certificates. A security operations centre (SOC) will back the setup, detecting threats and responding to incidents.

The numbers

The ECB's procurement documents put the estimated value of the awarded lot at 81.42 million euros, excluding VAT, with a contractual ceiling of 177.66 million euros. That ceiling is not guaranteed revenue: actual billing will depend on the services delivered, and it is not yet known how income will be split between the two firms.

Why it matters

The digital euro would be an electronic version of cash, issued and backed by the Eurosystem, covering in-store, online and person-to-person payments, with or without a connection. It would not be a cryptocurrency and is not meant to replace banknotes and coins. The ECB says two-thirds of card transactions rely on international networks and 13 euro area countries lack a national card scheme, which is part of the case for the project. Some financial institutions, however, worry about adaptation costs.

The ECB aims to be ready for a possible first issuance in 2029, provided the necessary European legislation is approved in time. In the second half of 2027, the Eurosystem plans a twelve-month pilot with 36 payment service providers, selected merchants and staff from the ECB and 19 national central banks. Issuance itself is still not guaranteed.