Key facts
- The European Central Bank selected 36 payment service providers for a 12-month digital euro pilot.
- The pilot will test a beta version of the digital euro for various payment types.
- Selected participants include Deutsche Bank, Revolut, Stripe, and UniCredit.
- The pilot is scheduled to begin in the second half of 2027.
- Potential issuance of the digital euro is planned for 2029, subject to legislative and Governing Council approval.
The European Central Bank (ECB) has selected 36 payment service providers (PSPs), including major banks and fintech firms, to participate in a 12-month pilot program for the digital euro. This initiative is a significant step toward a potential launch of the central bank digital currency (CBDC) by 2029. The pilot, scheduled to begin in the second half of 2027, will test a beta version of the digital euro across various payment scenarios, such as online, offline, in-store, and e-commerce transactions. ECB and national central bank staff will act as consumers, with selected merchants accepting payments. The ECB aims to reduce dependence on private payment networks and strengthen the European payments landscape. Concerns regarding financial privacy and transaction surveillance have been raised by advocates, mirroring debates surrounding a digital dollar. The final decision to issue a digital euro hinges on the passage of legislation and approval from the ECB Governing Council.