The European Central Bank (ECB) announced Tuesday that it has selected 36 payment service providers (PSPs) from the Euro area to participate in a pilot project for the digital euro. The initiative aims to test the technical functions and operational processes of the digital euro and optimize the overall user experience. This pilot phase is scheduled to commence in the second half of 2027 and is expected to run for twelve months.
Following an initial call for expressions of interest in March 2026, the ECB received over 50 applications from various PSPs. The selected participants, which include providers from both the banking and non-banking sectors, encompass a wide range of business models and company sizes. According to the ECB, this selection ensures a diverse and representative testing and learning environment for the digital euro.
During the pilot project, a beta version of the digital euro will be tested. While this version mirrors the functional and technical design of the digital euro outlined in the legislative draft, it does not yet hold the status of legal tender. Some participating PSPs will distribute the digital euro to private individuals, and employees of the Eurosystem will be given access to the beta services. Furthermore, acquiring PSPs will support selected merchants, enabling them to accept payments made in digital euros.
Piero Cipollone, an ECB Governing Council member who chairs the digital euro Taskforce, commented on the development, stating that the market’s strong interest in the pilot project demonstrates that the private sector is ready to actively contribute and rapidly advance the digital euro project to bolster the European payment landscape. He added, “We look forward to working closely with European payment service providers on developing a secure, efficient, and inclusive digital euro, and learning from each other throughout the process.”
