European Central Bank selects 36 payment companies for digital euro pilot program

The European Central Bank announced on Tuesday the selection of 36 payment service providers, including several major financial institutions in the eurozone, to participate in the pilot program for the digital euro project.

The ECB has been working on developing the digital euro for years, as part of efforts to enhance the financial autonomy of the eurozone and reduce its reliance on US payment service providers.

The bank hopes to launch the digital currency for the first time in 2029, provided that the necessary legislation is approved by the end of this year, according to Reuters.

The ECB explained in a statement that the pilot program, scheduled to launch in the second half of 2027, will last for 12 months and will aim to test the technical and operational aspects of the digital euro, in addition to improving user experience before its wider rollout.

More than 50 payment service providers had applied to participate in the program, while the list of 36 selected companies includes prominent financial institutions such as Deutsche Bank and UniCredit, along with fast-growing digital banks like Revolut.

The pilot program will be implemented in cooperation between the ECB and 19 national central banks out of 21 in the eurozone, excluding Bulgaria and Malta.

The ECB said the program will involve participation of staff from the ECB and the relevant national central banks, as well as e-commerce merchants and stores that provide daily services to consumers.

It added that staff of participating central banks will be able to make test payments using the digital euro, both between individuals and between individuals and businesses.

The program will use a trial version of the digital euro, which the ECB said will be close to the final digital currency in terms of functions and technologies used, but it will not have legal tender status.