European Central Bank Selects 36 Payment Firms to Pilot the Digital Euro Across Europe

The European Central Bank (ECB) has selected 36 payment service providers to participate in the next phase of testing for the digital euro, bringing the European Union one step closer to launching its own central bank digital cy (CBDC). The year-long pilot, scheduled to begin in the second half of 2027, will evaluate the digital euro’s technical performance, payment infrastructure, and user experience before a potential public launch in 2029, pending final legislative approval.

More than 50 companies applied to participate, highlighting strong industry interest in the project. The selected firms include major financial institutions such as Deutsche Bank, UniCredit, Revolut, Stripe, Adyen, and SumUp, representing a mix of traditional banks, fintech companies, and payment providers from across the euro area.

Europe Moves Closer to a Digital Euro

The pilot represents one of the most important milestones in the ECB’s multi-year effort to modernize Europe’s payment infrastructure.

During the 12-month trial, participating firms will work alongside the ECB and 19 eurozone national central banks to test:

• Person-to-person payments.
• Consumer-to-business transactions.
• Online and in-store purchases.
• Technical infrastructure.
• Operational processes.
• User experience.

The pilot will use a beta version of the digital euro that closely resembles the planned production system but will not have legal tender status.

Major Banks and Fintechs Join the Program

The list of participants includes some of Europe’s largest financial institutions alongside fast-growing fintech companies.

Notable participants include:

• Deutsche Bank
• UniCredit
• Revolut
• Stripe
• Adyen
• SumUp
• Worldline

The broad mix of participants is intended to ensure the pilot reflects a wide range of business models, payment technologies, and customer use cases across the European Union.

Reducing Dependence on Foreign Payment Networks

One of the ECB’s primary objectives is strengthening Europe’s payment independence.

Today, much of Europe’s digital payment infrastructure relies on U.S.-based companies such as Visa, Mastercard, and PayPal. The digital euro is designed to provide a European-controlled alternative while ensuring citizens continue to have access to central bank money in an increasingly digital economy.

ECB officials have repeatedly argued that greater payment sovereignty has become increasingly important as geopolitical and economic uncertainties continue reshaping global financial systems.

Privacy and Accessibility Remain Key Priorities

The ECB says the digital euro is intended to complement physical cash rather than replace it.

Planned features include:

• Free access for consumers.
• Offline payment capability.
• Strong privacy protections.
• Universal accessibility.
• Integration with existing payment providers.

The central bank has also proposed limits on individual holdings to reduce the risk of large deposit outflows from commercial banks into digital euro wallets.

Legislation Still Must Be Approved

Although the technical pilot is moving forward, the digital euro has not yet received final legal authorization.

The ECB hopes European lawmakers will complete the necessary legislation before the end of 2026, allowing formal approval in 2027 and a full public rollout by 2029. Without legislative approval, the ECB cannot issue a retail digital euro regardless of the pilot’s success.

CBDCs Continue Expanding Worldwide

Europe’s initiative reflects a broader global trend toward central bank digital currencies.

Countries around the world are exploring CBDCs to improve payment efficiency, strengthen monetary sovereignty, and respond to the rapid growth of private stablecoins and digital payment platforms. While many jurisdictions remain in the research phase, the ECB’s pilot places Europe among the most advanced large-scale CBDC projects currently under development.