ECB Taps 36 Payments Firms for Digital Euro Pilot While US Ditches CBDC Until 2030

The European Central Bank (ECB) on Tuesday said it has selected 36 payment service providers (PSPs) such as Deutsche Bank to participate in a 12-month pilot for the digital euro. This marks a major step toward a potential launch of the central bank digital currency (CBDC) by 2029, defying the antiCBDC push by the US.

ECB Picks 36 Payment Firms for Digital Euro Pilot

36 payment service providers from across the euro area have been selected for the digital euro pilot, the European Central Bank (ECB) revealed in an official announcement on July 14.

Starting in the second half of 2027, the ECB will start a 12-month testing for the digital euro’s technical functionality, operational processes, and user experience. This will take place at the ECB and 19 national central banks.

The pilot aims to support the ongoing preparatory work for the potential issuance of a digital euro. The central bank has selected Deutsche Bank, Revolut Bank, Stripe, and UniCredit among 36 payment service providers.

“The strong market interest in the pilot shows the private sector’s readiness to engage actively and quickly advance with the digital euro project to strengthen the European payments landscape,” said ECB Executive Board member Piero Cipollone.

EU Push for CBDC Launch in 2029, While US Defy Until 2030

The EU’s central bank is preparing to launch a digital euro by 2029, cutting dependence on Visa, Mastercard and Apple Pay. This raises concerns over financial privacy and transaction surveillance, while the EU provided MiCA license to crypto service providers, including Ripple, OKX and Coinbase.

To navigate these evolving rules securely, investors can look at the leading MiCA regulated crypto exchanges that are fully compliant with the European Union’s updated standards.

The pilot will use a beta version of the digital euro as anticipated in the draft legislation. However, it will not have legal tender status. Some providers will offer access to beta digital euro services, such as setting up their beta digital euro account and paying, and others.

The staff at participating central banks would also make beta digital euro payments from person to person and from person to business. This transaction will occur both at the physical point of sale, including Software Point of Sale, and via e-commerce, including mobile payments.

The move comes as the European Parliament voted in favor of a digital euro legislation, moving forward with a central bank digital currency (CBDC). In contrast, the US Senate passed the 21st Century ROAD to Housing Act that prevents the Fed from creating a CBDC until 2030. However, the anti-CBDC bill became federal law without President Trump’s signature last week.