COTI Crypto News: ECB Taps COTI and Others for Digital Euro Project

COTI Network’s Role in Advancing Privacy-Centric Digital Euro Solutions

The European Central Bank (ECB) has embarked on a comprehensive initiative to develop a digital euro, with deployment targeted for early 2026. As part of this project, the ECB has enlisted the participation of 70 private sector partners, ranging from financial institutions to blockchain technology firms, to design scalable and privacy-oriented payment solutions. 

Among the selected partners, COTI Network stands out for its expertise in privacy-preserving payment technologies, a capability that proved instrumental in its previous work on the Bank of Israel’s digital shekel. Shahaf Bar-Geffen, COTI’s co-founder and CEO, emphasized that the ECB’s selection validates COTI’s strategic focus on integrating privacy solutions within central bank digital currencies (CBDCs). He highlighted the company’s proprietary Garbled Circuits technology, which facilitates conditional payments without exposing sensitive user data, a critical aspect given the EU’s stringent data protection regulations. 

The ECB’s digital euro aims to provide a secure and efficient secondary payment mechanism for the Euro Area’s $15 trillion economy, reducing reliance on traditional bank-based gateways while enhancing transaction privacy and speed. 

COTI crypto news has spotlighted the network’s contribution to the project, underscoring its potential impact on the broader CBDC landscape. The company’s broader vision involves expanding its CBDC solutions across multiple jurisdictions, with potential applications extending to Africa and the Middle East, where COTI has been actively promoting tokenization initiatives.

The ECB’s strategic pivot toward digital currencies reflects a significant shift from its earlier stance, which viewed digital assets as potential threats to financial stability. The evolving regulatory landscape now recognizes digital currencies as essential tools for maintaining monetary control and promoting financial inclusion in a digital-first economy. 

By partnering with blockchain networks such as COTI, Quant Network, Hedera, and Kima Network, the ECB is pursuing a hybrid approach that combines centralized regulatory oversight with decentralized infrastructure. Quant Network is expected to focus on secure interoperability between CBDCs and existing financial systems, while Hedera contributes its expertise in scalable distributed ledger technology. Kima Network, meanwhile, is working on integrating cross-chain payment solutions, enabling asset transfers across multiple digital currencies. The collaboration between these blockchain networks suggests a more inclusive framework for the digital euro, potentially setting a global precedent for other central banks.

COTI’s CEO, Shahaf Bar-Geffen, also addressed the broader implications of CBDCs during an interview last month with Bitcoin.com. He argued that while CBDCs could disrupt stablecoins, they are unlikely to significantly impact decentralized cryptocurrencies like Bitcoin. Bar-Geffen downplayed the likelihood of CBDCs integrating with DeFi or Web3 ecosystems, positioning stablecoins as the primary bridge between fiat currencies and decentralized platforms. Nevertheless, he acknowledged that CBDCs provide central banks with a mechanism for offering faster, low-friction cross-border payments, modernizing financial services in an increasingly digital economy. 

COTI crypto news continues to highlight the company’s role in shaping the future of CBDCs, particularly through its privacy-preserving solutions that align with regulatory frameworks in Europe and beyond.

This article has been refined and enhanced by ChatGPT.