European Central Bank seeks merchants for digital euro pilot

The European Central Bank (ECB) is calling on e-commerce and mobile commerce merchants within the eurozone to participate in a digital euro pilot program. This initiative is part of the bank's preparations for a potential retail central bank digital currency (CBDC) issuance, which is targeted for 2029, pending legislation and Governing Council decisions.

The 12-month pilot phase is scheduled to begin in the second half of 2027. It will utilize a beta version of the currency to test technology, operational processes, and user experience across various scenarios, including online, mobile, in-store, and peer-to-peer payments. While the beta version will not be legal tender, the testing aims to ensure the system can integrate with existing commercial infrastructures.

To prepare for the pilot, the ECB has already selected 36 banks and payment firms to participate. The testing will involve the ECB, 19 euro-area national central banks, and selected merchants. A key focus of the project is ensuring commercial viability by making merchant acceptance seamless and exploring potential incentives, such as lower transaction fees, to encourage widespread adoption.