The European Central Bank (ECB) has selected 36 banks and payments companies to join a digital euro pilot starting in the second half of next year as it prepares the central bank digital currency (CBDC) for possible issuance in 2029.
The group, selected from 50 applicants, includes Adyen, Deutsche Bank, Revolut, SumUp, UniCredit and Worldline, the ECB said on its website.
While legislation enabling the currency has not yet been finalized, the central bank is pushing the project because it sees the adoption of private dollar-backed stablecoins, such as Tether’s USDT and Circle Internet’s USDC, as a threat to Europe’s monetary autonomy.
The 12-month pilot will test a beta version of the digital euro at the ECB and 19 national central banks in the euro area. It will cover online and offline transfers between individuals, in-store payments and e-commerce purchases.
Although it will not have legal status, the currency will approximate the design set out in the European Union bill. ECB staff, together with employees of the national central banks, will act as consumers. Select restaurants, cafes and online merchants will accept payments during the pilot.
