ECB selects 36 payment firms for digital euro pilot
The European Central Bank has selected 36 traditional banks and fintechs to test a beta digital euro starting in 2027, advancing a project designed to counter private stablecoins and reduce reliance on foreign payment networks.
The European Central Bank has chosen 36 payment providers from a pool of more than 50 applicants to participate in a 12-month digital euro pilot. The testing phase is scheduled to begin in the second half of 2027 and will involve a beta version of the digital currency. Selected companies will act as distributing or acquiring payment service providers for the ECB and 19 euro area national central banks.
The roster of participants bridges traditional banking and digital-native finance. It includes major eurozone lenders such as Deutsche Bank, UniCredit, and BPCE, alongside fintech platforms like Revolut Bank UAB, Stripe Technology, and Adyen N.V. Distributing providers will grant Eurosystem staff access to beta digital euro accounts, while acquiring providers will enable selected merchants to process these payments.
The pilot will evaluate payment functions, operational processes, and the overall user experience. Eurosystem staff, e-commerce platforms, and physical businesses like cafeterias and restaurants will execute both online and offline transactions. This includes testing person-to-person and person-to-business payments at physical points of sale.
For the financial sector, the pilot marks a shift from theoretical design to concrete infrastructure preparation. Banks and payment processors must now build the technical capabilities to handle a new form of central bank money. The ECB intends to use these results to refine the technical design ahead of a potential launch, keeping the central bank on track for a first issuance in 2029, provided digital euro regulation is adopted next year.
The technical rollout carries significant strategic weight for European markets. ECB Executive Board member Isabel Schnabel recently warned that dollar-denominated stablecoins risk reinforcing U.S. dollar dominance and increasing Europe's dependence on non-European payment providers. She framed the digital euro as essential to preserving the role of central bank money as private stablecoin adoption expands.
The selection of the 36 providers indicates the market is prepared to meet this challenge. “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. This European push contrasts sharply with the United States, where Treasury Secretary Scott Bessent has stated the administration will not permit a U.S. central bank digital currency.
