Digital euro: ECB selects Nexi and Deutsche Telekom to connect banks

The European Central Bank has selected Italian payments group Nexi and Deutsche Telekom to connect banks and central banks to its digital euro platform, with a possible issuance targeted for 2029. The contracts cover the infrastructure linking financial institutions to the ECB's settlement system, a critical layer for the project's rollout. The move advances the eurozone's central bank digital currency (CBDC) effort, positioning Nexi as a key European payments processor in the initiative while Deutsche Telekom brings telecom-scale connectivity. The selection follows the ECB's preparatory phase for the digital euro, which began after the project moved past its investigation stage. Market participants should watch for further vendor awards covering the wallet and merchant-side components, as well as the EU legislative timeline that will determine whether the 2029 issuance target holds.