ECB Names 36 Firms Including Deutsche Bank and Revolut for Digital Euro Pilot

What to Know

• The European Central Bank has selected 36 banks and payment firms for a 12-month digital euro pilot.
• The pilot is scheduled to begin in the second half of 2027 and will test a beta version of the proposed central bank digital currency.
• Selected participants include Adyen, Deutsche Bank, Revolut, SumUp, UniCredit and Worldline.
• The group was chosen from among 50 applicants.
• The trial will run across the ECB and 19 euro-area national central banks.
• Use cases will include online and offline transfers between individuals, in-store payments and e-commerce purchases.
• ECB staff and employees of national central banks will act as consumers during the pilot.
• Selected restaurants, cafeterias and online merchants will accept payments in the test environment.
• The digital euro will not have legal status during the pilot, but it will be close to the design set out in draft European Union legislation.
• The ECB has said it could be ready for possible issuance in 2029, subject to legislation and a separate decision by the ECB Governing Council.
• Debate around central bank digital currencies continues, with privacy concerns and monetary autonomy central to the policy discussion.

ECB Moves Digital Euro Into a More Practical Phase

The European Central Bank has taken a major step in its digital euro project by selecting 36 banks and payment companies to participate in a 12-month pilot scheduled to start in the second half of 2027. The program is designed to test a beta version of the digital euro in real payment settings, moving the proposed central bank digital currency from design work toward operational experimentation.

The selected group includes Adyen, Deutsche Bank, Revolut, SumUp, UniCredit and Worldline, placing established banks, fintech platforms and payment infrastructure providers inside the same testing framework. The ECB chose the participants from among 50 applicants, underscoring the level of industry interest in shaping how a potential digital euro could function if it is ultimately approved for issuance.

The pilot will take place across the ECB and 19 euro-area national central banks. It will focus on payment scenarios that reflect everyday consumer behavior, including online and offline transfers between individuals, in-store transactions and e-commerce purchases. ECB staff and employees of national central banks will act as consumers, while selected restaurants, cafeterias and online merchants will accept payments during the test.

What the Pilot Will Test

The digital euro pilot will examine whether a central bank-issued digital payment instrument can work smoothly across multiple environments. Online payments are central to that effort, but the inclusion of offline transfers is especially important because policymakers want any future digital euro to remain usable in situations where network access may be limited or unavailable.

In-store payments and e-commerce purchases will also be part of the trial, giving the ECB and participating firms a way to assess how the digital euro could operate at points of sale and through online merchant systems. For consumers, the goal would be a payment experience that feels familiar, while for merchants and intermediaries, the test will help determine how the technology fits into existing payment infrastructure.

The pilot currency will not have legal status. Even so, it will be close to the design set out in draft European Union legislation, making the test more than a purely theoretical exercise. By aligning the beta version with the legal framework under discussion, the ECB is positioning the pilot to generate practical information that could be relevant if lawmakers complete the rules needed for issuance.

Why Stablecoins Are Part of the Policy Backdrop

The ECB’s digital euro work is unfolding as private dollar-backed stablecoins continue to expand across global crypto markets and payment discussions. Tokens such as Tether’s USDT and Circle Internet’s USDC are viewed by the central bank as a potential challenge to Europe’s monetary autonomy, particularly if consumers and businesses increasingly rely on privately issued digital dollars for payments or savings.

That concern helps explain why the ECB is pressing ahead even though the necessary legislation has not yet been finalized. A digital euro would represent central bank money in digital form, rather than a private liability. For European policymakers, that distinction is central to the debate: the project is not only about payment technology, but also about maintaining public money as a relevant anchor in a rapidly changing financial system.

Market participants are watching the pilot because it could influence how banks, fintech firms and payment processors prepare for a future in which central bank digital currencies coexist with commercial bank money, cards, bank transfers, wallets and crypto-linked payment rails. The involvement of firms across the banking and payments ecosystem suggests the ECB wants to test more than a single consumer-facing application. It wants to understand how a digital euro might connect to the broader financial infrastructure already used across the euro area.

Legislation Remains the Key Hurdle

The ECB has said it could be ready for a possible digital euro issuance in 2029, but that timeline remains conditional. The final decision requires enabling legislation to pass and a separate decision from the ECB Governing Council. In other words, operational preparation does not mean issuance is guaranteed.

European Union lawmakers are still working on the legal framework required for the project. A European Parliament committee advanced the proposed legal framework last month, marking progress in the political process. Still, the digital euro faces ongoing scrutiny over design, access, privacy, financial stability and the role of commercial banks.

For the ECB, the pilot offers a way to continue technical preparation while the political process continues. For banks and payment firms, it provides an opportunity to understand potential integration requirements early. For consumers, the immediate impact will be limited because the pilot will use ECB and central bank employees rather than the general public.

Privacy Concerns Remain Central to CBDC Debate

Central bank digital currencies have generated opposition in some quarters, and privacy is one of the most sensitive issues. Critics worry that digital central bank money could allow transactions to be monitored more easily than cash, or that access to funds could be restricted by a central authority. These concerns have made CBDC design a political issue as much as a technological one.

The ECB’s inclusion of offline payments is notable in that context because offline functionality is often discussed as a way to preserve some cash-like features in digital form. However, the details of privacy protections, access rules and operational safeguards remain central to public acceptance. The closer the digital euro moves toward potential issuance, the more intense the debate is likely to become.

Concerns about CBDCs are not limited to Europe. In the United States, a law took effect last month barring the Federal Reserve from creating or issuing a digital dollar through Dec. 31, 2030. That contrast highlights a widening policy divide: while the European project is moving into operational testing, the United States has placed a legal restriction on a central bank digital dollar for that period.

What This Means for Banks and Payment Firms

The participation of banks and payment companies is a signal that the digital euro is being developed with intermediaries in mind. A central bank digital currency aimed at retail payments would need to work within a payment ecosystem that already includes commercial banks, card networks, online platforms, wallet providers and merchant service companies.

For firms such as Deutsche Bank, Revolut and the other selected participants, the pilot may offer early insight into technical standards, user flows and possible operational responsibilities. It may also help clarify how private-sector providers could distribute or support a public digital currency without being displaced by it.

The ECB has to balance several priorities. A digital euro would need to be easy enough for consumers to use, reliable enough for merchants to accept and safe enough to satisfy policymakers. At the same time, it must avoid creating unintended pressure on commercial bank deposits or undermining existing payment providers. The 12-month pilot is one step toward answering those practical questions.

A Test With Strategic Implications

The digital euro pilot is not a launch, and it does not mean euro-area consumers will soon be using a new central bank digital currency in everyday life. But it does show that the ECB is moving from planning into structured testing with private-sector participants and central bank users.

If the project continues toward possible issuance in 2029, the results of the pilot could shape the final design, including how payments are made, how offline functionality works, how merchants accept transactions and how private firms participate. The outcome may also influence the wider debate over CBDCs, stablecoins and the future role of central bank money in digital commerce.

For now, the most important point is that Europe’s digital euro effort remains conditional but active. Legislation still has to pass, and the ECB Governing Council must still make a separate decision. Until then, the pilot will serve as a controlled test of how a digital version of the euro might operate if policymakers decide to move ahead.

Frequently Asked Questions (FAQs)

What did the ECB announce?

The European Central Bank selected 36 banks and payment firms for a 12-month pilot of a beta version of the digital euro, scheduled to begin in the second half of 2027.

Which companies are involved in the digital euro pilot?

The selected group includes Adyen, Deutsche Bank, Revolut, SumUp, UniCredit and Worldline, among others chosen from 50 applicants.

What will the digital euro pilot test?

The pilot will test online and offline transfers between individuals, in-store payments and e-commerce purchases using a beta version of the digital euro.

Who will use the digital euro during the pilot?

ECB staff and employees of national central banks will act as consumers during the pilot, while selected restaurants, cafeterias and online merchants will accept payments.

Will the pilot digital euro have legal status?

No. The pilot version will not have legal status, although it will be close to the design set out in draft European Union legislation.

When could the digital euro be issued?

The ECB has said it could be ready for possible issuance in 2029, but issuance depends on legislation being passed and a separate decision by the ECB Governing Council.

Why is the ECB pursuing a digital euro?

The ECB sees private dollar-backed stablecoins such as USDT and USDC as a potential threat to Europe’s monetary autonomy, and the digital euro is part of its effort to preserve the role of public money in digital payments.

What are the main concerns around CBDCs?

Privacy advocates worry that central bank digital currencies could allow transactions to be monitored or access to digital money to be restricted, making privacy and control central issues in the debate.

How does the European approach differ from the United States?

Europe is moving into operational testing while EU lawmakers work on legislation, whereas a law in the United States bars the Federal Reserve from creating or issuing a digital dollar through Dec. 31, 2030.

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