The European Central Bank (ECB) partnered with deep-tech firm Fluency to continue the development of the Digital Euro.
“We’re proud to support the ECB in shaping a Digital Euro that is programmable, inclusive, and sovereign by design,” said Inga Mullins, CEO of the London-based company, which was announced as a partner on 6 May.
Fluency will support the ECB with experiments in conditional payments, a feature which allows the currency to move only when certain conditions are met. The ECB believes this is a key area for development, especially as automated, rules-based financial services grow and AI tools begin processing payments without human involvement.
Through the partnership, the ECB will leverage Fluency’s Aureum platform, a software-based offline payments technology. This will enable Digital Euro transactions without the need for internet connectivity or specialised hardware.
Mullins added: “Fluency’s architecture is built to connect digital money with real-world usability — whether through offline execution or intelligent conditional logic.”
Focusing on offline payments
The ECB began its research into the Digital Euro in 2020, launching a two-year investigation phase in 2021 to assess potential design, use cases, and impact on the European financial system.
The project has since moved into its innovation phase, which began in late 2023 which is expected to run for two years. The ECB is currently working with selected partners, like Fluency, to test solutions.
While the Digital Euro aims to provide a secure means of payment, it has faced criticism from some industry stakeholders over the potential for centralised surveillance of transactions, a common criticism surrounding Central Bank Digital Currencies (CBDCs).
However, time may change the public’s opinion toward the Digital Euro if it is offline compatible, with recent events possibly accelerating this shift, particularly amid a growing number of power outages and rising concerns around cyberattacks.
A major outage disrupted large parts of Portugal, Spain and southern France last month, leaving businesses temporarily closed as they could not facilitate payments. Access to cash was also disrupted, with ATMs reportedly unusable.
Being unable to access cash and make payments during the blackout highlighted the vulnerability of traditional payment systems and increased the potential value of an offline-capable digital currency.
