The European Central Bank (EBC) is still working on a digital euro and has just turned to the Portuguese company dealing with artificial intelligence for help. Her AI is to provide protection against fraud.
The European Central Bank reaches for AI
The European Central Bank needs AI to ensure the security of the digital euro. The contract concluded with the Portuguese company Feedezai is to help. According to its records, the startup – in cooperation with PwC – will develop models that will examine how people usually use their wallets and signal deviations from the norm that can signal a fraud. In practice, the point is that the service provider will be able to decide in real time whether to allow the transaction or block it. It sounds terrible, although in practice it only has to be about your safety.
ECB’s work on the digital euro is a lot of snails, but it is not only the bank’s fault, but also the community authorities, which still did not approve the project. Officials hope that the regulations will be adopted until mid -2026, which does not mean, however, that a digitized euro will appear on the market. No, the system will then be able to start in … 2029.
Is it surveillance?
Many people are still afraid that CBDC is a way to under surveillance. ECB decision makers, however, emphasize that it is only about increasing financial autonomy. The goal is to offer you an alternative payment method that will not depend on Visa, Mastercard or Stablecoin related to the American dollar. A member of the board of Piero Cipollone has repeatedly argued that the euro area needs its own digital money mechanisms to protect sovereignty in the changing global economy.
The problem is that the description of the AI model, which the digital euro is to be encouraged, raises concerns that CBDC will limit our capabilities, of course officially for our security. Rather, this does not arouse the trust of cryptocurrency users for which full freedom counts.
Feedai has experience in what to do – he already analyzes clients’ transactions of such banks such as Novobanco and Wio Bank.
