COTI Partners with European Central Bank for Digital Euro Initiative
COTI, a blockchain-focused privacy protocol, will partner with the European Central Bank (ECB) to enhance its upcoming digital euro initiative with advanced privacy technologies. The announcement made on Monday sheds light on COTI’s selection as a key partner, following its contributions to the Bank of Israel’s digital shekel project, which establishes COTI’s rising profile in the domain of central bank digital currencies (CBDCs).
Innovation in Payment Systems
As part of the ECB’s efforts, COTI is set to lend its privacy-centric technology to facilitate a system of “conditional payments.” This innovative system is designed to confirm the legitimacy of asset ownership prior to the execution of transactions. Employing a solution rooted in Soda Labs’ Garbled Circuits, COTI aims to offer a privacy-preserving framework that guarantees confidential transaction processes on the blockchain.
Recognition and Market Impact
Shahaf Bar-Geffen, COTI’s co-founder and CEO, expressed that being invited to collaborate with the ECB is a recognition of COTI’s expertise and diligence, noting that privacy is becoming essential for the evolution of Web3. Following the announcement, COTI’s native token experienced a surge, climbing 6% to reach a value of $0.07785.
The ECB’s Vision for the Digital Euro
The ECB has set its sights on a digital euro launch by the year 2026, as it enlists partners to showcase how the new currency will integrate with retail payment infrastructures. The inclusion of COTI’s technology is crucial for testing the proposed conditional payment framework, aiming to enhance transaction transparency and user privacy across the eurozone.
Concerns Over Monetary Independence
In related discussions, a senior official from the Banque de France recently warned about the implications of U.S. policies that support stablecoins, suggesting they could pose a threat to Europe’s monetary independence unless the digital euro is rapidly developed. Denis Beau, the first deputy governor, noted that the previous U.S. administration’s executive order fostering dollar-backed stablecoins could lead to concrete risks for European financial sovereignty, highlighting the urgency for advancements on the digital euro initiative.
