The European Central Bank (ECB) has selected 36 banks and payment firms to join a pilot of the digital euro starting in the second half of next year. The group, which includes Adyen, Deutsche Bank, Revolut, SumUp, UniCredit, and Worldline, was chosen from among 50 applicants. The 12-month pilot will test a beta version of the digital euro across the ECB and 19 euro-area national central banks, covering online and offline transfers between individuals, in-store payments, and e-commerce purchases.
Digital Euro Development
The ECB is pushing forward with the project due to concerns about the adoption of private dollar-backed stablecoins, such as Tether’s USDT and Circle Internet’s USDC, posing a threat to Europe’s monetary autonomy. Although the digital euro will not have legal status during the pilot, it will be close to the design set out in draft European Union legislation. The ECB’s staff and employees of national central banks will act as consumers, and selected restaurants, cafeterias, and online merchants will accept payments during the pilot.
Regulatory Considerations
The final decision on whether to proceed with a digital euro requires the legislation to pass and a separate decision from the ECB Governing Council, with a possible issuance in 2029.
Based on reporting from crypto.news.
