The European Central Bank has called on e-commerce and mobile commerce merchants across the euro area to take part in a digital euro pilot, according to CoinDesk. The program is intended to prepare the region for a possible 2029 rollout of a retail central bank digital currency. The pilot will test the technical setup, operational processes and user experience of a beta version that resembles the digital euro but is not legal tender.
The trial is set to run for 12 months starting in the second half of 2027. Any final launch would still depend on legislation and a separate decision by the ECB’s Governing Council. In recent weeks, the ECB had already selected 36 banks and payment institutions for the testing phase. The new pilot will involve the ECB, the national central banks of 19 euro area countries and selected merchants, with central bank staff acting as users across person-to-person online and offline transfers, in-store payments, e-commerce payments and mobile commerce transactions.
ECB President Christine Lagarde said a digital euro is necessary to protect Europe’s monetary sovereignty and reduce reliance on dollar-pegged stablecoins. The ECB has argued that the spread of private dollar stablecoins such as Tether’s USDT and Circle’s USDC poses a risk to Europe’s monetary autonomy. Isadora Arredondo, Hedera’s global policy vice president, said commercial viability will matter most and merchants may need incentives, including lower payment acceptance fees.
According to CoinDesk, the European Central Bank on Tuesday called on e-commerce and mobile commerce merchants in the euro area to join a digital euro pilot as the bloc prepares for a possible 2029 launch of a retail central bank digital currency.
Pilot timeline and structure
The program will test the technology, operational processes and user experience of a beta version of the currency. The ECB said the beta resembles the digital euro, but it is not legal tender.
The pilot will last 12 months and is scheduled to begin in the second half of 2027. Any eventual issuance would still require legislation and a separate decision by the ECB’s Governing Council.
In the previous few weeks, the ECB had already selected 36 banks and payment institutions for the testing phase. The pilot will involve the ECB, the national central banks of 19 euro area countries and selected merchants.
Payment scenarios to be tested
Central bank staff will act as users in the trial, testing person-to-person online and offline transfers, in-store payments, e-commerce payments and mobile commerce payments.
ECB points to stablecoin pressure
ECB President Christine Lagarde said the digital euro is necessary to preserve Europe’s monetary sovereignty and reduce dependence on dollar-pegged stablecoins.
The ECB believes the growing use of private dollar stablecoins, including Tether’s USDT and Circle’s USDC, threatens Europe’s monetary autonomy.
Merchant incentives seen as key
Isadora Arredondo, Hedera’s global policy vice president, said the success of the digital euro will depend more on commercial viability. She said merchants need incentives, and payment service providers could consider lowering the fees charged to merchants that accept digital euro payments.
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