Overview
- The ECB selected 36 banks and payment firms on Tuesday, including Adyen, Deutsche Bank, Revolut, SumUp, UniCredit and Worldline, to join a 12-month beta pilot of the digital euro.
- The pilot will begin in the second half of 2027 and will test a beta version of the digital euro for person-to-person transfers, in-store and point-of-sale payments, and online commerce with staff and participating merchants acting as users.
- The beta currency will not have legal tender status and is intended to be functionally close to the design in draft EU legislation so the ECB can assess technical performance and user experience.
- EU institutions have opened trilogue negotiations this week to finalise the legal framework by the end of 2026 and the ECB says any decision to issue the digital euro remains contingent on that law and a separate Governing Council approval aimed at possible readiness in 2029.
- Key unresolved design choices include privacy protections, an individual holding limit discussed around €3,000, and non-interest status, and these choices will shape effects on bank deposits, merchant costs and everyday user privacy.