EddieJayonCrypto
5 May 25
The European Central Bank (ECB) continues efforts to launch a digital euro despite slowed interest in CBDCs, naming COTI as a Pioneer Partner in its Digital Euro project. COTI will collaborate with the ECB and other organizations to develop a euro-wide central bank digital currency aimed at compleme...
The European Central Bank (ECB) has appointed COTI as a Pioneer Partner to develop a digital euro Central Bank Digital Currency (CBDC) focused on privacy, security, and rapid payments across Europe. COTI will specifically test privacy solutions for conditional payments, aiming to verify asset provenance without revealing sensitive user data—a cornerstone requirement for the digital euro system. With previous experience in central bank digital currency initiatives, including a proof-of-concept for Israel's Digital Shekel involving confidential cross-border transactions, COTI brings valuable expertise to the ECB’s project. The digital euro intends to complement cash, enhancing transaction privacy and security throughout the European Union's financial ecosystem. Despite a global slowdown in CBDC enthusiasm since recent years, notably influenced by political stances such as former US President Trump's opposition, the ECB persistently moves forward with its digital currency ambitions. COTI’s CEO and co-founder, Shahaf Bar-Geffen, emphasized the critical role of embedded confidentiality for CBDCs, stating that privacy is essential for user security and compliance, and must be integrated from the outset rather than as an add-on. As a Pioneer Partner, COTI will utilize and improve upon existing ECB infrastructure to rigorously test its privacy protocols for conditional payments, ensuring secure and private transactions without compromising data sensitivity. This partnership aligns with broader efforts to build a euro-wide CBDC that facilitates quick and secure payments, supporting the region's economic framework. In sum, COTI’s collaboration with the ECB underscores the growing importance of privacy-centric solutions in next-generation digital currencies and highlights the evolving landscape of CBDC development within Europe.