The European Central Bank has selected 36 payment service providers from across the euro area for a 12-month digital euro pilot scheduled to begin in the second half of 2027, as the central bank moves ahead with technical preparations for a potential retail central bank digital currency.

According to the ECB's website, the 36 selected participants were drawn from a pool of more than 50 applicants consisting of banks and non-bank payment service providers. The final list includes major eurozone financial institutions such as Germany's Deutsche Bank, Italy's UniCredit, and France's BPCE, alongside digital-native platforms like Lithuania-registered Revolut Bank UAB, Ireland's Stripe Technology, and the Netherlands-based Adyen N.V.

“The strong market interest in the pilot shows the private sector’s readiness to engage actively and quickly advance with the digital euro project to strengthen the European payments landscape,” ECB Executive Board member Piero Cipollone said in a statement on Tuesday.

Per the statement, participating payment service providers will act as distributing PSPs, acquiring PSPs, or both. Distributing providers will give Eurosystem staff access to beta digital euro accounts and payment services, while acquiring providers will enable selected merchants to accept beta digital euro payments.

The ECB said the pilot will use a beta version of the digital euro to test payment functions, operational processes, and user experience at the ECB and 19 euro area national central banks.

Eurosystem staff, e-commerce merchants and businesses such as cafeterias and restaurants will participate, testing person-to-person and person-to-business payments online and offline, including at physical points of sale, the bank said.

ECB’s digital euro roadmap

ECB stated that the pilot is intended to support its ongoing preparatory work for a potential digital euro issuance and refine the currency's technical design before any launch.

According to the digital euro roadmap tracker, the central bank aims to be ready for a potential first issuance in 2029, assuming the digital euro regulation is adopted in 2026. The ECB said a final decision on whether to issue the digital euro will only be taken after the legislation is approved.

The latest pilot milestone follows remarks by ECB Executive Board member Isabel Schnabel last month that the digital euro is essential to preserve the role of central bank money as stablecoin adoption grows.

Schnabel said central bank digital currencies, alongside robust regulation, are needed to address financial stability risks and reduce Europe's dependence on non-European payment providers, while noting that dollar-denominated stablecoins could reinforce U.S. dollar dominance.

Schnabel's comments contrast with the current U.S. administration's position on central bank digital currencies. U.S. Treasury Secretary Scott Bessent has been quoted saying the administration would not permit a U.S. CBDC while urging Congress to advance the Clarity Act.

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