The European Central Bank has selected 36 payment service providers to test a beta version of the digital euro starting in the second half of 2027. Among those selected are former critics such as Deutsche Bank, DZ Bank, and Groupe BPCE, alongside UniCredit, Revolut, and SumUp.
The digital euro has been one of the most contentious issues in European payments policy in recent years, drawing skepticism from parts of the banking sector that have feared competition for deposits and increased costs. The fact that the ECB is now bringing some of its most vocal critics into the actual testing phase signals that opposition within the banking industry may be softening — coinciding with the European Parliament's recent vote to advance negotiations on the regulatory framework.
The ECB received more than 50 applications after the Eurosystem issued a call for expressions of interest for potential pilot participants in March 2026. The 36 ultimately selected span traditional banks to non-bank payment companies, ensuring broad geographical coverage and a diverse range of business models. Among the selected participants are UniCredit, Revolut, and the payment processor SumUp.
Pilot participants are divided into two roles: distributing companies, which provide ECB staff with access to open beta accounts and make payments using the digital euro, and acquiring companies, which enable selected merchants to accept beta payments. Some companies have been assigned both roles.
According to the Financial Times, several of the participants are known for having been among the strongest critics of the digital euro project within the European banking industry. Germany's Deutsche Bank and DZ Bank, as well as France's Groupe BPCE, are all participating in the pilot, which is scheduled to launch in the second half of 2027 and run for twelve months.
The banks' active participation in the testing does not necessarily mean their criticism has been shelved — but it grants them direct influence over the system's design ahead of a potential launch.
The trial utilizes a beta version of the digital euro that is technically and functionally similar to what is proposed in the draft legislation, but without the status of legal tender. The pilot comes as negotiations between the European Parliament, member states, and the European Commission regarding the final regulatory framework have begun, three years after the legislative proposal was first introduced.
The objective is to finalize the law by the end of the year, which in turn could pave the way for the ECB to formally approve the digital euro starting January 1, 2027 — 25 years after euro banknotes and coins entered circulation. Upon full launch, expected in 2029, the digital euro will be made available to consumers free of charge, either via a dedicated app or through commercial banks' mobile apps.
The ECB argues that the digital euro is essential to secure the eurozone's independence and sovereignty, given that card and online payments in Europe today are heavily dominated by American corporations like Visa, Mastercard, and PayPal. The central bank has also pointed out that stablecoins could pose a risk to financial stability, partly because they can draw deposits away from banks and do not always maintain a stable value.
With 36 companies — including several former skeptics — now directly involved in the testing phase, the digital euro project is moving from political debate to practical experimentation. Whether this will be enough to win over the rest of the banking sector will likely only become clear once the pilot is underway.
Sources: European Central Bank, Financial Times, Reuters
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