- The ECB has selected 36 payment service providers to participate in the digital euro pilot across 19 countries.
The European Central Bank (ECB) is ramping up the digital euro pilot in preparation for its full launch in 2029. The institution just released its list of participants in the real-world testing of the Central Bank Digital Currency (CBDC) across 19 national central banks.
Participants in the Digital Euro Pilot
On Tuesday, the ECB named the 36 payment service providers (PSPs), which will participate in the digital euro pilot. It included Germany’s Deutsche Bank AG, DZ Bank AG, and PAYONE GmbH.
The central bank claimed that since it opened its invitation to the digital euro pilot in March, more than 50 companies have applied to become PSPs. For the institution, the numbers indicate strong market interest and engagement in the initiative.
The ECB screened the PSPs based on four pre-defined eligibility criteria:
- Licensing compliance and TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer) access
- Technical and operational capabilities with high system availability, stability, and performance
- Market presence and business fit in the European Union (EU)
- Delivery track record and engagement capacity, with documented experience in running pilot programs in payments or banking
Meanwhile, only the central banks of Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, the Netherlands, Austria, Portugal, Slovenia, Slovakia, and Finland will join the trial.
The ECB’s Targets for the CBDC
The ECB highlighted that the pilot aims to support the preparatory work for the digital euro’s issuance. It will also evaluate the CBDC’s technical functionality and operational processes. Likewise, it will assess public feedback on the project and refine it along the way.
The pilot starts in the second half of 2027, and it will run for 12 months. The central bank expects its full rollout by mid-2029.
Legislation for the Digital Euro
Despite the ECB’s major advances in the digital euro, its future hinges on whether the European Parliament will pass a law authorizing its issuance. EU lawmakers, governments, and the European Commission are still discussing the matter. Nonetheless, legislators have marked it as a priority legislation to expedite its passage.
The parties are working to finalize the law before 2026 ends. It would clear the ECB’s digital euro framework in preparation for its pilot.
“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 Piero Cipollone, Executive Board member of the ECB and chair of the digital euro’s High-Level Task Force. “We look forward to deeper engagement as we work with and learn alongside European payment service providers in developing a secure, efficient and inclusive digital euro.”
