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The European Central Bank (ECB) has selected 36 payment service providers (PSPs) from across the euro area to participate in the pilot phase of the digital euro, marking another milestone in the development of the proposed central bank digital currency (CBDC).
The pilot programme is scheduled to begin in the second half of 2027 and will run for 12 months, providing the ECB with an opportunity to evaluate the digital euro’s technical capabilities, operational processes, and overall user experience before any potential rollout.
The selection follows a March 2026 call for expressions of interest, which attracted more than 50 applications from banks and non-bank payment providers across the eurozone.
According to the ECB, the 36 selected participants represent a diverse mix of financial institutions, business models, and geographical markets, ensuring broad representation across the European payments ecosystem.
Piero Cipollone, Member of the Executive Board of the ECB, said the level of industry participation demonstrates growing support for the digital euro initiative.
He noted that the strong response from payment providers reflects the private sector’s willingness to collaborate in building a more resilient, innovative, and integrated European payments landscape.
The pilot will utilise a beta version of the digital euro that closely mirrors the functionality and technical architecture proposed under the current draft legislation. However, the ECB clarified that the pilot currency will not have legal tender status during the testing period.
The programme will be conducted by the ECB in collaboration with 19 national central banks across the euro area, including those in Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, the Netherlands, Austria, Portugal, Slovenia, Slovakia, and Finland.
Testing will involve staff from the ECB, participating national central banks, selected payment service providers, e-commerce merchants, and physical retailers offering everyday payment services.
Participants will evaluate a range of payment scenarios, including person-to-person (P2P) transactions, person-to-business (P2B) payments, online purchases, in-store transactions, offline payments, and mobile payment functionality.
The pilot is expected to generate valuable technical and operational insights that will help refine the design of the digital euro, ensuring it delivers a secure, efficient, and inclusive payment solution that complements cash and existing electronic payment methods across the euro area.
The initiative represents a significant step in the ECB’s broader strategy to modernise Europe’s payments infrastructure while supporting financial innovation, digital sovereignty, and greater resilience in the region’s evolving digital economy.
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