ECB picks AI startup to prevent digital euro fraud

Core Insights - The European Central Bank (ECB) has selected Portuguese startup Feedzai to assist in fraud prevention for its upcoming digital euro currency, with a contract valued at up to 237.3 million euros ($278.69 million) [1][3] - The project aims to enhance the euro zone's financial autonomy from the United States, particularly in response to the dominance of Visa and Mastercard and the rise of stablecoins [4] Company Overview - Feedzai specializes in artificial intelligence and processes approximately $8 trillion in payments annually for clients, including Novobanco and Wio Bank [5] - The company recently secured $75 million in funding from various investors, including Lince Capital and Iberis Capital [5] Project Details - The four-year agreement with the ECB includes an option to extend for up to 15 years, with an estimated value of 79.1 million euros and a maximum cap of 237.3 million euros [3] - Feedzai, along with its subcontractor PwC, will develop an AI model to assess the fraud risk of digital euro payments based on customer behavior and transaction history [2] Legislative Context - The ECB is currently awaiting legislative approval for the digital euro, which it anticipates receiving by mid-next year, aiming for a launch in 2029 [4]