COTI (COTI) has joined the ECB’s initiative to create a digital euro, a euro-wide central bank digital currency (CBDC) with a target launch by 2026. As part of a select group of “pioneering partners” including Accenture, KPMG and TATA, COTI will help demonstrate how conditional payments can be implemented using the ECB’s simulated technical infrastructure.
The development is in line with COTI’s track record in the CBDC space, having collaborated with the Bank of Israel on a proof of concept for the digital shekel last year. A key element of the project is privacy, an area in which COTI has already excelled. Using the version of Soda Labs’ Garbled Circuits, sensitive data will be preserved even as the authenticity of a transaction is verified.
The concept of conditional payments requires verification of the origin of assets before transfer, and privacy solutions like COTI can ensure that personal or corporate data remains private throughout. By addressing issues such as cross-border settlements and the conversion of multiple currencies, COTI hopes to show the ECB how a digital euro could work seamlessly across the $15 trillion eurozone economy.
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