Amazon sees the added value of the digital euro, which will be introduced by the European Central Bank (ECB). The company has recently developed a prototype for integrating the digital euro into Web shop payments.
The ECB is exploring the possibilities for a digital currency. This currency should serve as a stable alternative to crypto-currencies such as bitcoin, while ensuring that bank money remains accessible in the digital age.
Prototype development
In the spring, the ECB issued a call for front-end providers in the European payments market to contribute ideas and concrete applications. In the end, Amazon was selected to build a prototype and explore the potential of the digital euro for online payments.
The goal of this exercise was to successfully develop a front-end prototype of an e-commerce transaction and integrate it with the back-end infrastructure of the Euro system, Amazon said. In doing so, the U.S. company wanted to demonstrate that a potential digital euro could be seamlessly integrated into the existing European payments landscape.
Specific applications
In addition to Amazon, four other parties explored specific applications of the digital euro. These were Italian bank Nexi, Spanish CaixaBank, French payment processor Worldline and the European Payments Initiative (EPI), a European partnership of banks and payment processors. The EPI recently acquired some payment solutions, such as iDeal, to create a Europe-wide payment platform.
Lessons learned
The ECB presented the findings and lessons learned by the five prototype developers in a report. The bank concludes that the tests showed that smooth integration is possible, with enough room for innovative features and technologies.
"The findings also confirm that the digital euro can in principle work both online and offline, with independent designs. This enhances the resilience of the digital euro," the ECB said. The prototypes developed so far will not serve as the basis for future payment solutions.
Positive view of Amazon on digital euro
Amazon is positive about the introduction of the digital euro. A company spokesman said, "At Amazon, we believe that the digital euro can be a tool to stimulate innovation and make payments more efficient." The online giant is optimistic about the benefits this new public infrastructure will bring to European Union residents, merchants and the broader EU economy.
