The European Central Bank (ECB) selected 36 banks and payment firms to join a pilot of the digital euro 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 among 50 applicants, includes Adyen, Deutsche Bank, Revolut, SumUp, UniCredit and Worldline, the ECB said on its website.
While legislation enabling the currency has yet to be finalized, the central bank is pushing forward 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 euro-area national central banks. It will cover online and offline transfers between individuals, in-store payments and e-commerce purchases.
Although it won’t have legal status, the currency will be close to the design set out in draft European Union legislation. The ECB’s staff, along with employees of national central banks, will act as consumers. Selected restaurants, cafeterias and online merchants will accept payments during the pilot.