The European Central Bank (ECB) selected 36 banks and payment firms to participate in a digital euro pilot project starting in 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.
While the legislation enabling the currency has yet to be finalized, the central bank is pushing ahead with the project because it sees 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 across 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 be close to the design set out in draft EU legislation. The staff of the ECB will act as consumers, together with employees of national central banks. Selected restaurants, cafeterias and online merchants will accept payments during the pilot project.
