Signal The digital euro gets ready for beta testing

Summary

The ECB selected 36 payment service providers from across the euro area, drawn from a pool of more than 50 applicants, for a 12-month digital euro pilot scheduled to begin in the second half of 2027. Selected participants include Deutsche Bank, UniCredit, Revolut, Nexi Payments, Worldline, Raiffeisen Bank International and Poste Italiane. The pilot will test a beta version of the digital euro — technically close to the proposed legislation but lacking legal tender status — through online and offline person-to-person payments and person-to-business transactions at physical points of sale and via e-commerce. The European Parliament separately authorised the opening of formal negotiations with the EU Council on introducing a retail digital euro, with the ECB aiming for a possible first issuance in 2029 if the digital euro Regulation is adopted. The ECB is also developing Project Pontes, a separate wholesale CBDC for tokenised finance and distributed ledgers.