The European Central Bank (ECB) has announced the selection of 36 payment service providers from across the euro area to participate in a 12-month digital euro pilot set to begin in the second half of 2027. This marks a significant step in the central bank’s ongoing technical preparations for a potential retail central bank digital currency (CBDC).
Chosen from over 50 applicants, the diverse group includes major financial institutions like Deutsche Bank, UniCredit, and BPCE, as well as digital-native platforms such as Revolut, Stripe, and Adyen. These participants will test a beta version of the digital euro, focusing on payment functions, operational processes, and user experience across the ECB and 19 national central banks.
Piero Cipollone, ECB Executive Board member, emphasized that the strong interest reflects the private sector’s readiness to advance the digital euro project and strengthen Europe’s payments landscape. The pilot will involve Eurosystem staff, selected merchants, and businesses like cafeterias, testing person-to-person and person-to-business payments both online and offline, including at physical points of sale. Providers will act as distributing or acquiring entities, enabling accounts and merchant payment acceptance respectively.
The ECB aims to use the pilot’s findings to refine the digital euro’s technical design, with a readiness target for a possible first issuance in 2029, contingent on the adoption of necessary legislation. Board member Isabel Schnabel recently underscored the digital euro’s importance in preserving central bank money’s role amid growing stablecoin adoption, while also addressing Europe’s dependence on non-European payment providers. The pilot contrasts with the current U.S. administration’s stance against a CBDC.
