ECB selects 36 firms for digital euro pilot

The European Central Bank has selected 36 payment service providers to participate in a 12-month pilot programme for the digital euro. The initiative, scheduled to commence in the second half of 2027, will test the technical functionality and operational processes of the proposed central bank digital currency. The selected firms include major financial institutions such as Deutsche Bank and UniCredit, as well as digital banks like Revolut.

More than 50 companies applied to participate in the pilot, with the final list comprising entities that will test the system at the ECB and 19 of the euro zone’s 21 national central banks. Bulgaria and Malta are excluded from the trial. The pilot will involve staff from the ECB and participating national central banks, as well as e-commerce merchants and merchants offering everyday services.

Participants will utilise a beta version of the digital euro, which the ECB states will be functionally and technically close to the final product. However, the bank clarified that this beta version will not hold legal tender status. Staff at participating central banks will be able to make beta digital euro payments from person to person and from person to business during the trial period.

The strategic objective behind the digital euro is to reduce the euro zone's reliance on US-based payment providers. The ECB has been developing the project for several years, viewing it as a critical component of the region's financial infrastructure. The pilot aims to refine the user experience and ensure operational readiness ahead of potential rollout.

The ECB targets the first issuance of the digital euro in 2029. This timeline is contingent on long-delayed legislation being enacted by the end of 2026. Any delays in the legislative process could impact the issuance date, meaning the 2029 target remains conditional on regulatory progress within the specified deadline.