The European Central Bank (ECB) has selected 36 banks and payments companies to join a digital euro pilot from the second half of next year, as it prepares the central bank digital currency (CBDC) for potential issuance in 2029.
The group, selected from 50 applicants, includes Adyen, Deutsche Bank, Revolut, SumUp, UniCredit and Worldline, the ECB said on its website.
Although legislation authorizing the currency has not yet been finalized, the central bank is pushing ahead with the project because it views 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 project will test a beta version of the digital euro within the ECB and 19 national central banks in the euro area. It will cover online and offline peer-to-peer transfers, in-store payments and online purchases.
Although it will not have a legal status, the currency will be close to that defined in the draft European Union legislation. ECB staff, as well as employees of national central banks, will act as consumers. Some restaurants, cafeterias and online merchants will accept payments during the pilot.
