ECB Picks 36 Banks and Payments Firms for Digital Euro Pilot Starting in H2 2026

The European Central Bank has chosen 36 banks and payments companies to take part in a pilot of the digital euro that is scheduled to begin in the second half of next year, a key step in preparations that could allow the central bank digital currency to be issued as early as 2029. Selected from 50 applicants, the group includes Adyen, Deutsche Bank, Revolut, SumUp, UniCredit and Worldline, according to information posted by the ECB. Legislation authorizing the digital euro is still being finalized, but the ECB is pressing ahead, citing the growing adoption of private, dollar-backed stablecoins such as Tether's USDT and Circle Internet's USDC as a risk to Europe's monetary autonomy. The 12-month pilot will test a beta version of the digital euro across the ECB and the 19 national central banks in the euro area. Planned use cases include person-to-person transfers both online and offline, in-store payments, and e-commerce purchases. While the pilot currency will not have legal status, the ECB said it will closely reflect the design outlined in draft European Union legislation. ECB and national central bank staff will participate as consumers. A set of restaurants, cafeterias and online merchants will be enlisted to accept payments during the trial. Central bank digital currencies have faced pushback in some countries. Privacy advocates argue CBDCs could enable transaction monitoring and allow central banks to restrict access. In the United States, a law that took effect last month prohibits the Federal Reserve from creating or issuing a digital dollar through Dec. 31, 2030. In Europe, the project is moving into operational testing as EU lawmakers work on the legal framework needed for issuance. A European Parliament committee advanced the proposed legislation last month. Any final green light for a digital euro would require the legislation to pass and a separate approval by the ECB Governing Council. The ECB has said it could be ready for potential issuance in 2029.