ECB picks 36 payment firms for digital euro pilot

The European Central Bank has picked 36 payment service providers, including some of the euro zone’s biggest financial firms, to ​join the pilot programme for its digital euro project, it said ‌on Tuesday.

The ECB has been working on the digital euro for years, partly to wean the bloc off U.S.-based payment providers, and hopes ​for first issuance in 2029, provided that long-delayed legislation ​is put in place by the end of this ⁠year.

The pilot, due to start in the second half of 2027, will last for 12 ​months and will test the digital euro’s technical functionality and operational processes, ​and will also be used to refine user experience, the ECB said in a statement.

More than 50 companies applied to participate in the pilot ​and the 36 selected firms include such top names as ​Deutsche Bank and UniCredit as well as fast-growing digital banks such as Revolut.

The pilot ‌will ⁠take place at the ECB and 19 of the euro zone’s 21 central banks, with absences from Bulgaria and Malta.

“The pilot will involve staff from the ECB and participating national central ​banks, as well ​as e-commerce merchants, ⁠and merchants offering everyday services on their premises,” the ECB said.

“Staff at participating central banks ​will have the opportunity to make beta digital ​euro payments ⁠from person to person and from person to business,” the ECB added.

The pilot will use a beta version of the digital ⁠euro. It ​will be functionally and technically close ​to the digital euro but will not have legal tender status, the ECB ​added.

Source:  Reuters