EU fails Amazon over development of ECB’s digital euro

Fri 30 Sep 2022 ▪ 9:00 PM ▪
5
Min Read – By
Cédrick Aimé GUELANG OFALABEN

The European Central Bank (ECB) is currently in the experimental phase of the digital euro. To do this, the company invited five companies to be part of the implementation of user interface prototypes. The idea is to simulate transmission operations to ensure everything is optimized. Among the companies selected by the ECB is Amazon, the only non-European company on the shortlist. Precisely, this presence of Amazon is not unanimous over the union. Members of the European Parliament are wary of billionaire Jeff Bezos’ company’s lack of credibility in terms of confidentiality and taxation.

EU fails Amazon over ECB’s digital euro plan

Digital Euro: European Parliamentarians criticize ECB’s choice

The European Central Bank (ECB) receives a lot of criticism from MEPs for some of its choices. The European organization has decided to invite several companies for prototype design Digital settlements in the euro. Apart from these select companies, there is the American e-commerce giant Amazon. And frankly, the precedents between the EU and Jeff Plesos’ organization are cause for concern.

EU politicians suspect the US company is lax on privacy and taxation. Also, of the five companies called out by the ECB, Amazon is the only one not European, which is a real problem for some MPs. Almost unanimously, MEPs expressed their main concerns and raised the tax Amazon’s tax and social policy is “questionable”. They are angry that a project as sensitive as building prototypes of the digital euro involves an often-blamed company. Violates European data protection regulations. Note that following its failures on confidentiality, the US company has received a record fine from regulatory authorities. Moreover, the company rejected my block and appealed.

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On the sidelines of the quarterly exchanges between the different institutions of the European Union, Fabio Panetta, a member of the ECB’s Executive Committee, made a list of the institution’s progress within the framework of the investigations on digital. Euro. Parliamentarians took the opportunity to reiterate their anger over Amazon’s possible role in the ongoing process.

MEPs doubt Amazon’s credibility

MEPs are clear, they don’t trust Amazon at all. Ero Heinaluma ; The center-left parliamentarian returned the accusations 746 million euros in fines It weighs against Jeff Plessos’ company. He used it to deal with the ECB and its dubious choices. On the ECB side, we tried to play it safe. ECB policymakers also raised the possibility that Amazon may not play a major role in the next stages of the plan. They also noted that Amazon’s contribution to developing payment interfaces was enormous.

Also, the company will not receive a single penny for its services in the scheme. MEP Stephanie Yon-Courtin Shocked by the pitch, he added, “We knew Amazon had to pay with data.” Jonas FernandezAnd being concerned makes it clear: “Honestly, I’m more worried now than before”.

The end of the prototype design process is scheduled for March 2023. Meanwhile, the ECB will reduce its work with MEPs. It must regain their faith in the credibility of the Digital Euro project.

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About the Author: Cory Weinberg

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