Key Highlights
- The ECB selected 36 payment service providers (PSPs) for the digital euro pilot.
- The pilot will begin in the second half of 2027 and run for 12 months.
- More than 50 applications were submitted following the ECB’s call for interest.
The European Central Bank (ECB) has selected 36 payment service providers (PSPs) from across the euro area to participate in its upcoming digital euro pilot, moving the project into one of its most significant testing phases ahead of any decision on issuing a central bank digital currency.
According to an announcement published on Tuesday, the pilot is designed to evaluate the digital euro’s technical infrastructure, operational processes, and user experience. The program is expected to begin during the second half of 2027 and continue for 12 months, using a beta version of the digital euro that closely resembles the proposed final product but will not have legal tender status.
Strong industry interest in the digital euro
The ECB received more than 50 applications after opening its call for expressions of interest in March 2026, reflecting growing interest from the European payments industry.
Following an evaluation based on predefined eligibility criteria, the central bank selected 36 participants, including both traditional banks and non-bank payment providers. According to the ECB, the group represents a broad mix of business models and provides wide geographical coverage across the euro area, helping create a representative testing environment for the digital euro.
Commenting on the selection, Piero Cipollone, ECB Executive Board member and Chair of the High-Level Task Force on a digital euro, said the strong response highlights the private sector’s willingness to support the project and strengthen Europe’s payments landscape.
He added that the ECB looks forward to working closely with payment service providers as it continues developing a secure, efficient, and inclusive digital euro.
What will the pilot test?
The pilot will involve the ECB and 19 national central banks across the euro area, including Germany, France, Italy, Spain, the Netherlands, Ireland, Portugal, Finland, Austria, Belgium, and several other member states. Some of the selected firms will act as distributing PSPs, allowing ECB and central bank staff to open beta digital euro accounts and make payments.
Others will serve as acquiring PSPs, enabling selected merchants to receive digital euro payments, while some firms will perform both roles. The pilot will test several real-world payment scenarios, including person-to-person payments (online and offline), retail point-of-sale payments, and software point of sale (SoftPOS) payments, E-commerce transactions, and mobile payments.
The ECB said merchants participating in the pilot will include online retailers as well as businesses providing everyday services such as restaurants and cafeterias.
Why won’t the beta digital euro be legal tender?
The central bank emphasized that the pilot will use a beta version of the digital euro. While the system will closely resemble the architecture envisioned under the proposed EU legislation, the beta currency will not function as legal tender during the testing phase.
Instead, the exercise is intended to identify technical improvements, refine user experience, and validate operational procedures before any final decision on issuance is made. The ECB also confirmed that updates on the pilot’s progress will be published regularly through its dedicated digital euro portal.
How does the pilot fit into the ECB’s broader plans?
The latest pilot marks the next phase of the ECB’s multi-year digital euro project.
Earlier this year, the central bank outlined a roadmap targeting a potential launch around 2029, positioning the CBDC as a way to strengthen Europe’s payment sovereignty and reduce reliance on international payment networks such as Visa and Mastercard.
In March, the ECB also invited external payments experts to help develop standards for ATM access, certification frameworks, and payment infrastructure, laying the technical groundwork for the digital euro ahead of any legislative approval.
With 36 payment service providers now selected, the project moves from technical preparation into real-world testing, allowing banks, payment firms, and merchants to evaluate how the digital euro could function in everyday transactions before any final issuance decision is made.
Although the ECB has not committed to issuing a digital euro, the results of the 2027 trial are expected to help policymakers assess whether the CBDC can operate securely, efficiently, and at scale alongside cash, commercial bank money, and privately issued digital payment solutions before deciding its long-term future.
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