The ECB has selected 36 banks and payment companies to participate in the digital euro pilot project. Selected institutions include Deutsche Bank, Revolut, Adyen, Sumup, UniCredit and Worldline. The project was screened from 50 applicants and is scheduled to start in the second half of 2027 for a period of 12 months.
2027, test start in the second half.
The test will be conducted around a test version of the digital euro, using on-line and off-line transfers between individuals, door-to-door payments and electrician consumption. The “user” who took part in the testing was mainly the ECB and 19 national central bank employees in the euro zone, and some restaurants, canteens and online traders were also paid for during the pilot.
According to the arrangements disclosed by the European Central Bank, the euro figure in the pilot did not yet have legal currency status, but would be as close as possible to the design in the draft EU legislation. This means that the current round of tests is closer to the operational exercises before the official release, rather than just the conceptual validation.
Release still pending adoption of legislation
The eventual roll-out of the euro remains dependent on two conditions: the completion of the adoption of the relevant EU legislation and the separate approval decision of the ECB Governing Council. The ECB had previously indicated that, if the process was smooth, the conditions for issuance could be in place as early as 2029.
Legislation at the EU level is still in progress. A committee of the European Parliament had moved the relevant legal framework forward last month, which meant that, while the digital euro project had not landed, the system was being synchronized.
The dollar is under pressure.
An important context in which the European Central Bank continues to advance the project is its concern about the expansion of the United States dollar. According to the ECB, a dollar-backed private stabilization currency, such as the USDST of Tether and the USDC of Circle, could undermine European autonomy in monetary and payment systems.
Unlike Europe, where testing continues, the United States is more cautious about the central bank's digital currency. According to the information in the text, a law in force in the United States last month prohibited the Federal Reserve from creating or issuing digital dollars by 31 December 2030.
At the same time, the euro figure also faces privacy challenges. Critics are concerned that central bank digital currency may make transactions easier to track and may even result in restricted user access. Such disputes are expected to continue to influence subsequent legislation and public discussions.