Telefonica and Minsait win ECB ten-year digital euro infrastructure deal

Telefonica has secured one of two supplier slots on the European Central Bank's digital euro infrastructure programme, under a ten-year contract starting 3 May 2027. The Spanish operator will share the work with Minsait, the digitalisation unit of Indra Group, in a consortium the two companies are forming to deliver the communications and security systems the project requires.

The deal hands Telefonica a rare position for a telecom operator: core infrastructure provider to a future central bank digital currency. The ECB's plan depends on linking what Telefonica described as "public and private intermediaries", including "banks, fintech companies and payment service providers", into a single functioning system.

What does each partner deliver?

Telefonica anticipates providing a Multiprotocol Label Switching network, a virtual private network and SD-WAN capabilities. That stack places the operator firmly in its B2B comfort zone: managed corporate connectivity rather than consumer services.

Minsait carries the systems-integration weight. The company is tasked with delivering platforms and services to enable secure connectivity, integrating the various elements using APIs, and overseeing digital identity verification systems. Digital identity is a sensitive component in any currency scheme, because it determines how users are authenticated without exposing transaction data.

Telefonica also noted physical infrastructure deployments are needed to enable offline elements of the digital euro scheme. Offline payment capability has been a stated ECB requirement, allowing transactions without internet connectivity, and it imposes additional demands on terminals and network endpoints.

How did the companies frame it?

Borja Ochoa, chair of Telefonica Espana and general director of its B2B unit, said the digital euro would "require robust, resilient and secure communications infrastructure". The operator said it brings "extensive experience in critical networks, connectivity and cybersecurity" to the arrangement.

Minsait CEO Luis Fernandez called the digital euro programme "one of the most transformative technology and financial projects currently being undertaken in Europe". He added that Minsait's experience delivering "technological capabilities in critical systems" would now support a "more integrated, secure and sovereign financial" system.

The "sovereign" framing matters for practitioners tracking European policy. It aligns with EU pressure to reduce reliance on non-European technology providers in payments and critical infrastructure, a theme that has shaped procurement across the bloc's digital projects.

What changes for the market?

The contract gives Telefonica a decade-long anchor tenant in financial infrastructure, diversifying revenue beyond telecom services at a time when European operators face flat consumer markets. For Minsait, it consolidates a position in critical public-sector systems.

The 2027 start date signals the ECB's realistic build timeline. Any deployment before then remains preparation, not launch, and the ECB has not committed to a firm digital euro issuance date. Vendors and banks planning integration work should treat 3 May 2027 as the point when the consortium's obligations begin, with intermediaries connecting through the API layer Minsait will build.

Selection of a telecom operator alongside an IT integrator, rather than two IT firms, also marks a shift: it treats carrier-grade connectivity as foundational to a digital currency. Other European operators watching from the sidelines will read this as evidence that CBDC programmes can translate into infrastructure contracts, not just consulting work. Work under the ten-year agreement now moves to detailed design and physical rollout planning ahead of the 2027 commencement.