Svmuu News European Central Bank (ECB) announced that it has selected 36 banks and payment companies to participate in the digital euro pilot program in preparation for the potential issuance of a central bank digital currency (CBDC) in 2029. The selected institutions include Deutsche Bank, Revolut, Adyen, SumUp, UniCredit, and Worldline, among others.The list was selected from among 50 applicant institutions.
The digital euro pilot program will launch in the second half of next year and run for 12 months to test the beta version of the digital euro in various payment scenarios, including online personal transfers, offline payments, in-store payments, and e-commerce payments.The pilot will cover the European Central Bank (ECB) and the central banks of 19 eurozone countries. ECB staff and central bank employees from these countries will participate in the testing as users, while select restaurants, cafes, and online merchants will support digital euro payments.
Although the digital euro does not yet have legal status, its design will align closely with the relevant legislative framework currently being developed by the European Union. European Central Bank (ECB) stated that the final decision on whether to issue the digital euro remains contingent upon the passage of relevant regulations and a decision by the ECB’s Governing Council.
European Central Bank (ECB)One of the key reasons for advancing the digital euro is concern that the development of private U.S. dollar-pegged stablecoins could undermine Europe’s monetary sovereignty. In recent years, U.S. dollar-pegged stablecoins such as Tether USDT and Circle USDC have grown rapidly in the global payments sector, prompting European regulators to focus on financial autonomy.
However, the CBDC project still faces privacy controversies. Some privacy advocacy groups worry that central bank digital currencies could allow transactions to be tracked and even pose the risk of restricted access to accounts. In contrast, the United States recently passed legislation restricting the Federal Reserve System from issuing a digital dollar before the end of 2030.
Currently, the European digital euro project is entering the practical testing phase, while the EU legislature is advancing the relevant legal framework. If the regulatory process proceeds smoothly, the digital euro could be officially launched as early as 2029. (CoinDesk)