ECB Pilots Digital Euro
European Central Bank Selects 36 PSPs for Digital Euro Beta Testing Phase
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Key Points
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The pilot will use a beta version of the digital euro that is functionally and technically close to the final design but will not have legal tender status.
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Italy accounts for the largest share of participants with seven PSPs, Germany has five, and Portugal and Greece have three each; the pilot will span 19 euro-area national central banks to ensure broad geographic coverage.
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The 36 PSPs include a mix of banks and fintechs, notably UniCredit, Poste Italiane, Nexi Payments, Banca Sella, Banca Monte dei Paschi di Siena, Isybank, Numia, along with fintechs Stripe and Revolut.
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The broader geopolitical backdrop includes the United States moving to block the Federal Reserve from issuing a CBDC, highlighting differing approaches to digital currencies between the EU and US.
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Some bankers have warned that a digital euro could affect private funding streams if deposits migrate to central-bank wallets, with executives from Deutsche Bank, DZ Bank and Groupe BPCE among the critics.
The European Central Bank has chosen 36 payment service providers to test a digital euro, moving the project into its most concrete phase yet. The 12-month pilot will begin in the second half of 2027, according to CoinTelegraph, with beta testing run across the ECB and 19 national central banks.
The selected firms were picked from more than 50 applicants. They include major banks like Deutsche Bank and UniCredit, fintechs like Revolut and Stripe, and payment processors like Nexi Payments, according to CoinGape. The mix reflects the ECB's push for broad private-sector involvement across the euro area.
Who Made the Cut and Where They're From
Italy leads the participant list with seven PSPs. Germany follows with five, and Portugal and Greece each have three, according to CryptoNews. Notable Italian firms include UniCredit, Poste Italiane, Nexi Payments, Banca Sella, Banca Monte dei Paschi di Siena, Isybank, and Numia.
The selection spans banks and fintechs alike. Revolut and Stripe represent the fintech side. Deutsche Bank and Groupe BPCE are among the traditional lenders. The ECB says this mix is needed to test real-world use across different markets and business models, according to CoinGape.
What the Beta Pilot Will Actually Test
The pilot will use a beta version of the digital euro. It will be close to the final design in both technical and functional terms. But it will not hold legal tender status during the test phase, according to Head Topics.
The 12-month test will check three main things: technical performance, operational processes, and user experience. Testing will run at the ECB itself and at all 19 euro-area national central banks. The goal is to find problems before any real launch, not to issue a live currency.
Banks Push Back Over Deposit Migration Risk
Not everyone is enthusiastic. Executives from Deutsche Bank, DZ Bank, and Groupe BPCE have warned that a digital euro could pull deposits away from private banks into central-bank wallets. That would squeeze the funding that banks rely on to make loans, according to CoinTelegraph.
The ECB has acknowledged the concern but argues the project is essential. The central bank says Europe needs its own digital currency to protect monetary sovereignty as cash use falls and digital payments rise. The pilot is still a preparatory step. Final issuance depends on further approval from European lawmakers.
EU and US Take Opposite Paths on Digital Currency
While the ECB pushes ahead, the United States is moving in the opposite direction. Washington has taken steps to block the Federal Reserve from issuing its own digital currency, known as a CBDC, according to CryptoNews. The contrast highlights a growing divide in how major economies view state-backed digital money.
The ECB's digital euro is not guaranteed to launch. It still needs legislative sign-off. But the selection of 36 firms marks the clearest signal yet that the ECB intends to be ready. The beta pilot in 2027 will be the last major test before any final decision is made, according to Eritv News.
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