Crypto: Ecb Targets 2027 Digital Euro Pilot As Provider Selection Begins In...
The ECB is set to begin selecting EU-licensed payment providers for its digital euro pilot this quarter, with the 12-month pilot set to kick off in the second half of 2027.
The European Central Bank (ECB) is moving closer to a pilot for a digital euro, with Executive Board member Piero Cipollone outlining plans to begin selecting payment service providers (PSPs) in early 2026 ahead of a 12-month test scheduled for the second half of 2027.
Cipollone on Wednesday held an executive committee meeting of the Italian Banking Association. He said the pilot would involve a limited number of payment service providers, merchants and Eurosystem staff. Selection of participating providers is expected to start in the first quarter of 2026.
Cipollone said the digital euro will be designed to ensure it protects European card schemes and keeps banks at the core of the Eurozone payments system, according to Reuters.
European Union-licensed PSPs will be at the core of digital euro distribution, Cipollone said. For participating PSPs, the pilot offers an early-readiness advantage ahead of a potential broader rollout, including hands-on experience with onboarding, settlement and liquidity management.
He added that it also provides clearer visibility on future infrastructure, compliance and staffing costs, helping firms plan investments more accurately.
With direct Eurosystem support and the ability to feed into the design process, participants could gain both operational insight and influence over how the digital euro ultimately takes shape.
The digital euro pilot is also intended to protect domestic European payment schemes, such as Italy’s Bancomat card network and Spain’s Bizum peer-to-peer system.
“Banks could lose their role in payments not just because of stablecoins but also due to other private solutions,” Cipollone said, pointing to Europe’s heavy reliance on international card networks like Visa and Mastercard.
He added that the digital euro would be structured to preserve the competitiveness of local schemes.
Source: CoinTelegraph
