ECB Selects AI Startup Feedzai to Prevent Fraud in Planned Digital Euro Launch

The European Central Bank (ECB) has selected the Portuguese AI startup Feedzai to develop fraud detection and prevention systems for its upcoming digital euro project, which is targeted for launch in 2029 pending legislative approval. Feedzai, in collaboration with PwC, will create an AI-powered risk scoring model to evaluate the fraud risk of digital euro transactions by analyzing deviations from typical customer behavior, helping payment service providers decide whether to approve payments. This initiative is part of a broader effort by the ECB to ensure the financial integrity and security of the digital euro while enhancing Europe’s financial independence from dominant payment networks like Visa and Mastercard. The contract with Feedzai, valued between €79.1 million and €237.3 million, is one of several awarded by the ECB to multiple vendors for various components including offline solutions and app development. ECB board member Piero Cipollone emphasized that no payments will be made until the project officially starts, underscoring the cautious and phased approach of the ECB. Feedzai, which processes $8 trillion in payments annually for major banks, is seen as a key partner in safeguarding the integrity of Europe’s future digital currency.