ECB selects 36 companies including Deutsche Bank and Revolut for digital euro pilot
The ECB has selected 36 banks and payment companies for a 12-month digital euro pilot starting in 2027. The project aims for a potential issuance in 2029, in response to the threat of private stablecoins like Tether's USDT.
The European Central Bank (ECB) has selected 36 banks and payment companies to participate in a digital euro pilot project, which will begin in the second half of 2027. Among the selected companies are Adyen, Deutsche Bank, Revolut, SumUp, UniCredit, and Worldline, the ECB said on its website. This 12-month pilot aims to test a beta version of the central bank digital currency (CBDC) before a potential issuance in 2029. The selection was made from 50 applications. The pilot will involve employees of the ECB and the 19 national central banks of the euro area as end users. The tests will cover online and offline person-to-person transfers, in-store payments, and online purchases.
36 companies selected from 50 applications to test the digital euro
The ECB received 50 applications and selected 36 for this pilot project. The selected group includes major payment players in Europe, such as Deutsche Bank, Revolut, and Worldline. The pilot will test a beta version of the digital euro for online, offline, in-store, and e-commerce payments, with employees of the ECB and national central banks as users.
The 12-month pilot, which will begin in the second half of 2027, will cover online and offline person-to-person transfers, in-store payments, and online purchases. Although the currency has no legal status, it will be close to the design envisaged in the European Union's draft legislation. Employees of the ECB and national central banks will act as consumers, and selected restaurants, cafeterias, and online merchants will accept payments.
ECB accelerates in the face of the threat of private stablecoins
The ECB is accelerating the digital euro project because it considers the adoption of private stablecoins backed by the dollar, such as Tether's USDT and Circle's USDC, as a threat to Europe's monetary autonomy. The legislation enabling the currency is not yet finalized. The final decision to issue the digital euro requires the adoption of the legislation and a separate decision by the ECB's Governing Council. The ECB has indicated that it could be ready for a potential issuance in 2029.
Opposition from privacy advocates and contrast with the United States
Central bank digital currencies face opposition from some quarters. Privacy advocates fear that their transactions could be monitored and that the central bank could block their access to the currency. Echoing these concerns, a law came into effect last month in the United States, prohibiting the Federal Reserve from creating or issuing a digital dollar until December 31, 2030. In contrast, the European project is moving to the operational testing phase as EU lawmakers work on the legislation necessary for issuance.
