COTI, QNT, HBAR, and KIMA Join ECB’s Digital Euro Project

This follows COTI’s success in the Bank of Israel’s Digital Shekel trials. It further solidified the company’s position as a leader in privacy tech for CBDCs.

The ECB’s plan is to launch the Digital Euro by early 2026, and it’s actively selecting infrastructure providers to support its rollout.

Privacy Tech Drives Secure Payments in the ECB’s Digital Euro Project

The goal is not only to ensure the smooth implementation of a digital currency. Also, to build a robust system that protects users’ privacy and meets regulatory requirements. COTI’s offering, which uses its proprietary privacy solution based on Garbled Circuits technology. It will play a central role in developing conditional payments for the Digital Euro.

In simple terms, “conditional payments” are transactions. Here assets can only be exchanged once certain criteria are met and validated. Think of it like an online marketplace. A buyer’s payment is only released after they confirm the quality and delivery of the product. COTI’s solution guarantees that sensitive data remains private throughout this process. This allows users to confirm the legitimacy of the transaction without exposing personal information.

This is crucial as the ECB works on creating a digital version of cash that can be used just like physical money. But in a secure, decentralized way. With over $15 trillion flowing through the euro-area economy, such a payment system would be groundbreaking. This will offer a simple, private alternative to the existing digital payment methods. They are often fragmented and inefficient.

Also, Quant announced that they are going to participate building the digital euro:

Growing Influence in the CBDC Space

The ECB collaboration is not COTI’s first step into the world of CBDCs. Last year, the company developed a proof-of-concept for the Bank of Israel’s Digital Shekel project. It demonstrated how CBDCs could be used to enable trustless transactions across borders. This experience has prepared COTI to scale its technology for the Digital Euro. It will test the privacy and efficiency of its solution on a much larger scale.

COTI’s CEO, Shahaf Bar-Geffen, highlighted the importance of privacy in Web3 and CBDCs. He emphasized that confidentiality should be a foundational element of any new financial system. “Privacy is a vital component for the future of Web3,” he said. This reflects a growing trend in the industry: as more countries and institutions explore CBDCs, privacy will be a key concern for users and regulators alike.

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