ECB Calls on Merchants for Digital Euro Pilot
In a Tuesday press release, the European Central Bank invited merchants operating online and through mobile channels to take part in a digital euro pilot. According to the release, joining gives merchants a chance to work alongside the ECB and the euro area's national central banks, try out a simulated digital euro environment themselves, and offer input that will help define the digital euro's technical specifications. The pilot should get underway in the second half of 2027 and run for a year, using a beta version of the digital euro to assess its technical workings, operational procedures and overall user experience.[S1]
The ECB stated in the release that the pilot would be run in a transparent manner, which it said reflects the Eurosystem's dedication to introducing a digital euro responsibly and in a way that earns trust, assuming a future decision to issue one is made. Any final call on issuing a digital euro would come only after the pertinent EU legislation has been passed. Meanwhile, the Eurosystem's continuing preparatory work on a digital euro would be carried out flexibly so that it stays in step with the legislative process.[S1]
36 Payment Providers Selected for Pilot
According to a July 14 press release from the ECB, 36 payment service providers (PSPs) drawn from across the euro area were chosen to take part in the digital euro pilot. The ECB noted in that release that over 50 PSPs had applied, which it said demonstrated considerable market enthusiasm for the digital euro. Those picked, the release said, comprise banks as well as nonbank service providers, covering a variety of business models, sizes and geographic reach.[S1]
Piero Cipollone, a member of the ECB's Executive Board, said in the July release that the level of market interest in the pilot demonstrates the private sector is ready to take part actively and move quickly on the digital euro project in order to bolster the European payments landscape. He also said the ECB anticipates engaging more deeply as it collaborates with and learns from European payment service providers while building a digital euro that is secure, efficient and inclusive.[S1]
Geopolitical Momentum Behind Digital Euro
Reporting in June indicated that worries about excessive reliance on U.S. payment providers including Mastercard and Visa, together with the White House's backing of stablecoins, had given fresh impetus to the digital euro effort. That project began in 2023 but had lost momentum as countries and lawmakers debated it.[S1]
