Telefonica, Minsait deliver digital euro set-up
Telefonica secured a prestigious position as a supplier of key infrastructure for a European Central Bank (ECB) plan to digitise the euro, with the operator one of two service providers selected.
The Spanish operator is working in concert with Indra Group company Minsait to deliver communications and security systems needed to link the various bodies involved in providing a digital euro. The ECB is tapping the pair under a ten-year deal due to commence on 3 May 2027.
Deutsche Telekom and Italian specialist Nexi Payments are the ECB’s other infrastructure pick. The bank stated their deal commenced late last month, though it only publicised the decision today (30 October).
Each consortium is required to have the necessary infrastructure in place by 2029.
Telefonica stated “public and private intermediaries” including “banks, fintech companies and payment service providers” would be connected under the digital euro programme.
Borja Ochoa, chair of Telefonica Espana and general director of its B2B unit, said the digital euro would “require robust, resilient and secure communications infrastructure”.
Minsait specialises in digitalisation and disruptive technologies: its CEO Luis Fernandez said the digital euro programme is “one of the most transformative technology and financial projects currently being undertaken in Europe”.
Fernandez explained Minsait’s experience delivering “technological capabilities in critical systems” would now be put to use in a “more integrated, secure and sovereign financial” system.
Telefonica anticipates providing a Multiprotocol Label Switching network, a virtual private network and SD-WAN capabilities. Minsait is tasked with delivering platforms and services to enable secure connectivity, along with integrating various elements using APIs.
Minsait is also to oversee digital identity verification systems.
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