- The European Central Bank (ECB) will start selecting providers for its digital euro pilot in early 2026.
- A 12-month operational test involving selected banks, merchants, and staff is scheduled for the second half of 2027.
- The CBDC is designed to bolster European banks and payment schemes against international card networks and private solutions.
- Participation offers payment service providers early operational insight and cost visibility ahead of a potential 2029 launch.
The European Central Bank is accelerating toward a live pilot of the digital euro, with plans to begin choosing payment service providers in early 2026 for a crucial year-long test starting in late 2027. Executive Board Member Piero Cipollone outlined this timeline, emphasizing the project’s role in safeguarding Europe‘s financial sovereignty.
Consequently, the pilot will involve a limited group of providers, merchants, and central bank staff. Cipollone stated the digital euro will be designed to protect European card schemes and ensure banks remain central to payments, according to Reuters.
For participants, the pilot provides a major strategic advantage. They will gain hands-on experience with onboarding, settlement, and liquidity management directly supported by the Eurosystem.
This early involvement also offers clearer visibility on future infrastructure and compliance costs. Providers can therefore plan their investments with greater accuracy and influence the final design.
Meanwhile, Cipollone highlighted that stablecoins are not the only threat to European banks. He pointed to the continent’s heavy reliance on international card networks like VISA and Mastercard.
The digital euro aims to shield domestic projects like Italy‘s Bancomat and Spain‘s Bizum. “Banks could lose their role in payments not just because of stablecoins but also due to other private solutions,” he said.
To protect local competitiveness, the digital euro’s merchant fees will be strategically set. Cipollone explained “The cap on the fee… will be lower than what the international payments network… charge, but higher than what domestic payments scheme… charge.”
This latest announcement marks a significant step forward after the ECB entered the project’s next phase in October 2025. The central bank is targeting a full launch for the digital currency in 2029.
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