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The European Central Bank (ECB) has selected 36 payment service providers to participate in a year-long pilot of the digital euro, marking one of the project’s most significant milestones as Europe prepares for a potential central bank digital currency (CBDC).
The pilot, scheduled to begin in the second half of 2027, will test the technical infrastructure, operational processes and user experience of the digital euro using a beta version of the currency. The exercise forms part of the ECB‘s ongoing preparations for a possible public launch in 2029, provided the necessary European legislation is approved.
More than 50 banks and payment firms applied to participate, reflecting growing industry interest in what could become Europe’s largest digital payments initiative.
The ECB said the 36 selected participants include both traditional financial institutions and digital-native payment providers, ensuring broad geographic and business-model representation across the euro area.
Among the participants are major banking groups including Deutsche Bank, UniCredit, BNP Paribas, BPCE and several national banking champions, alongside fintech and payments companies such as Revolut, Stripe and Adyen.
The digital euro is here to protect Europeans’ freedom to choose how they pay. In an interview with Ouest-France, Executive Board member Piero Cipollone explains how it will protect privacy, strengthen Europe’s autonomy in payments and support innovation https://t.co/kZgXXXbUvW pic.twitter.com/CpAiRGxnC7
— European Central Bank (@ecb) July 15, 2026
Some providers will act as “distributing PSPs,” allowing Eurosystem staff to open beta digital euro accounts and make payments, while others will serve merchants by enabling acceptance of digital euro transactions. Several firms will perform both functions.
“The strong market interest in the pilot shows the private sector’s readiness to engage actively and quickly advance with the digital euro project to strengthen the European payments landscape,” said ECB Executive Board member Piero Cipollone.
The pilot will take place at the ECB and 19 national central banks across the euro area, excluding Bulgaria and Malta.
The 12-month exercise will use a beta version of the digital euro that closely resembles the proposed final product but will not have legal tender status.
ECB staff, employees at participating central banks, online retailers and everyday merchants such as restaurants and cafeterias will participate in the testing phase.
The trial will evaluate person-to-person (P2P) payments as well as person-to-business (P2B) transactions across multiple payment environments.
The European Central Bank (ECB) doesn't just want a "digital coin"—they want a smart, programmable financial system. And that is exactly why Quant ($QNT) was selected as a official Pioneer Partner in the ECB’s Digital Euro project.https://t.co/SYhFjvGqUn https://t.co/4ZtAHr8TXX pic.twitter.com/ugezBtkPkW
— wemissrivers (@wemissGilbert) July 14, 2026
Participants will test:
The ECB said the pilot will help refine both the currency’s technical architecture and overall user experience before any decision is made on issuing a digital euro.
Although the technical work continues to advance, the ECB stressed that the digital euro cannot be issued unless European lawmakers first approve the legal framework currently under negotiation between the European Parliament, the European Commission and the Council of the European Union.
Current timelines envision legislation being finalized before the end of 2026, allowing the pilot to begin in 2027 and potentially paving the way for a public launch around 2029.
ECB officials have repeatedly emphasized that the digital euro is intended to complement, not replace, cash.
President Christine Lagarde reiterated that both physical cash and the digital euro would coexist as legal tender, while officials have also stressed that the CBDC will not pay interest and individual holdings will likely be capped to prevent large-scale migration of deposits away from commercial banks.
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