The European Central Bank will begin selecting EU-licensed payment service providers in the first quarter of 2026 for a 12-month digital euro pilot scheduled to start in the second half of 2027.
Executive Board member Piero Cipollone said the pilot will involve a limited group of payment providers, merchants and Eurosystem staff, marking a further step towards a potential full launch in 2029.
“Banks could lose their role in payments not just because of stablecoins but also due to other private solutions,”
Cipollone said, adding that the digital euro will be designed to protect European card schemes and keep banks central to the Eurozone payments system.
The selection process is expected to give participating providers early operational experience in onboarding, settlement and liquidity management, along with clearer visibility over infrastructure and compliance costs.
Cipollone said merchant fees on the digital euro network will be capped below those charged by international card networks such as Visa and Mastercard, but above domestic schemes like Italy’s Bancomat and Spain’s Bizum.
The pilot follows the ECB’s decision in October 2025 to move the project into its next phase, contingent on legislation being enacted in 2026 to enable testing to proceed.
If approved, the 2027 pilot would serve as a key milestone toward a targeted 2029 rollout, positioning the digital euro as both a response to private-sector payment dominance and a strategic tool to reinforce European monetary sovereignty.