The initiative will test how the new form of digital currency could be used in everyday transactions, including payments in shops and online. ECB Executive Board member Piero Cipollone announced the planned testing and called on European institutions to speed up the adoption of the necessary legal framework.
The pilot will involve Eurosystem employees, selected banks and other payment service providers, as well as participating merchants. Testing will cover payments in retail stores, central bank canteens and online platforms, allowing the ECB to assess the system’s technical functionality, security and practical usability. The central bank has already selected 36 payment service providers from more than 50 applicants, while the selection of online and mobile merchants expected to participate is due to be announced in early 2027.
However, the pilot version will not have the status of legal tender and will not mean that the digital euro is being introduced for public use. It is designed as a controlled testing phase ahead of a possible future launch. The ECB has stressed that the decision to issue the digital currency can only be taken once the European Parliament and the Council of the EU have adopted the relevant legislation.
Cipollone has warned that delays in adopting the legal framework could push back the entire process and postpone the potential introduction of the digital euro. The project is intended to provide Europeans with an electronic form of central bank money that can be used alongside cash, rather than replace banknotes and coins. If the legislative process is completed on schedule, the ECB aims to be ready for a possible first issuance in 2029.
