ECB selects 36 firms to join digital euro pilot

The European Central Bank on Monday announced it has selected 36 payment service providers to participate in a digital euro pilot, choosing from over 50 applications submitted by firms across the euro zone. The pilot will take place at the ECB and several Eurosystem national central banks to test the digital currency's core functionalities ahead of a potential 2029 launch.ecb.europa+1

A Year of Momentum

The selection follows a call for expressions of interest that the Eurosystem opened in March 2026, with a deadline of May 14 for licensed payment service providers to apply. Selected firms will support the onboarding of consumers and merchants, validate core functionalities, and provide feedback to help refine the digital euro's technical specifications and user experience. The 12-month pilot is scheduled to begin in the second half of 2027 and will test features including person-to-person payments, point-of-sale transactions, and e-commerce in a controlled environment.ecb.europa+2

The announcement comes days after the European Parliament voted 416 to 169 in a plenary session to greenlight formal negotiations on the digital euro legislative package. That vote, held on July 8, confirmed the position adopted by the Economic and Monetary Affairs Committee on June 23, which passed 43 to 14. Rapporteur Fernando Navarrete Rojas will lead Parliament's negotiating team into trilogue talks with the Irish Presidency of the Council.kucoin+3

Design and Sovereignty

The digital euro is designed as a retail central bank digital currency for everyday spending, working both online and offline and complementing rather than replacing cash. Parliament's negotiating mandate calls for privacy-by-design principles, zero-knowledge proofs for transaction verification, free basic services for consumers, and a cap on individual holdings to protect financial stability.centralbank+2

The initiative is explicitly framed as a sovereignty project. Parliament stated the digital euro would offer citizens "a private, secure and innovative way to pay, while reducing reliance on non-EU providers". Most businesses would be required to accept it, with exceptions for the self-employed and micro enterprises that do not accept other digital payments.bignewsnetwork+1

The ECB has said a final decision on issuance will come only after the regulation is adopted, with legislation expected to be finalized by the end of 2026 and the first digital euros potentially issued during 2029.ecb.europa+1