n Friday, the European Central Bank (ECB) announced that it had selected e-commerce giant Amazon.com (AMZN 0.92%) and four other entities to develop user interface prototypes for a possible digital version of the euro.
A digital version of the euro -- or of any other major central bank digital currency (CBDC), such as the U.S. dollar -- would likely have investing implications throughout the financial sector. This includes implications for cryptocurrencies, digital currencies that fall outside the domain of central banks or any centralized authorities.
The focus of this article is on what this development could mean for Amazon.
Along with Amazon, the ECB selected CaixaBank, Worldline, the European Payments Initiative (EPI), and Nexi to help it develop potential user interfaces for a digital euro. It selected them from a pool of 54 applicants because it believes they can best address the "specific capabilities" required for an assigned use case for a digital euro. They will not be financially compensated for their prototyping work.