Europe’s central bank is getting serious about its digital currency ambitions. The European Central Bank has selected 36 licensed payment service providers to participate in a pilot program for the digital euro, moving the project from concept into something that looks a lot more like a real product.
The selection, completed in July 2026, came after a competitive application process that drew more than 50 submissions from banks and payment firms across the euro area. The ECB picked its 36 with an eye toward diversity, prioritizing a mix of business models and geographic spread to stress-test the digital euro across different markets and use cases.
What the pilot actually looks like
The 12-month pilot is scheduled to begin in the second half of 2027. Participating PSPs, merchants, and Eurosystem staff will run the digital euro through person-to-person transfers, person-to-business payments at physical points of sale, and e-commerce transactions.
Participation is voluntary and unremunerated. The PSPs are expected to sign agreements with their respective national central banks and provide structured feedback to help the ECB refine both the technology and the operational processes underpinning the digital euro.
