ECB selects Deutsche Bank, Revolut among firms for digital euro trial

The European Central Bank (ECB) has selected 36 banks and payment firms, including Deutsche Bank and Revolut, for a year-long pilot program to test a digital euro. Set to launch in the latter half of 2027, this initiative aims to explore various payment scenarios before the potential introduction of the central bank digital currency (CBDC) by 2029.

From a pool of 50 candidates, notable participants also include Adyen, SumUp, UniCredit, and Worldline. Although the legislative framework for the digital euro is still under development, the ECB is moving forward amid rising concerns about the impact of privately issued stablecoins like Tether's USDT and Circle's USDC on Europe’s monetary sovereignty.

The pilot will involve transactions across the eurozone, facilitating online, offline, in-store, and e-commerce payments. ECB staff and employees from national central banks will act as consumers during the trial, which will not grant the digital euro official legal status but will test its design in line with proposed EU legislation.

Concerns about privacy and access restrictions associated with CBDCs have emerged, particularly in light of a new U.S. law banning the Federal Reserve from launching a digital dollar until 2030. In contrast, the ECB is advancing its operational testing while EU lawmakers work on the necessary legal framework, with recent progress made in the European Parliament.

The decision to officially launch the digital euro will depend on the passage of this legislation and approval from the ECB Governing Council, with potential issuance anticipated as early as 2029.