European fintech associations are urging the European Central Bank to open its digital euro testing environment to a wider range of participants, arguing that limiting access mainly to banks could weaken innovation and slow consumer adoption across the euro area.
In a joint letter sent directly to the ECB and the European Commission, the European Fintech Association and the Payments Innovation Alliance called for startups and payment innovators to be included in the digital euro sandbox. The associations said broader participation would help ensure the project reflects real market needs and practical payment use cases.
The letter has not been published publicly, according to the associations. Instead, it was submitted as part of ongoing industry engagement with EU institutions, a common approach during early stages of policy and technical development.
At present, the ECB’s digital euro pilot framework is largely open to banks and large payment institutions. Fintech firms argue that this structure sidelines companies that are often responsible for developing consumer-facing payment applications and experimenting with new features.
Industry representatives say restricted access makes it difficult to test innovations such as programmable payments, offline functionality, and advanced wallet designs. These capabilities are frequently highlighted in policy debates as potential differentiators between a digital euro and existing private payment solutions.
“Fintechs are closest to the end user,” said Laura Conti, a spokesperson for the European Fintech Association. “If the ECB wants the digital euro to succeed, it must be built with them, not just for them.”
Timing questions ahead of next testing phase
The ECB has previously signalled that it intends to expand the digital euro testing environment in 2025, when the next phase of experimentation begins. However, it has not confirmed when additional participants might be admitted or what criteria would apply.
Analysts say early inclusion of fintechs could help the ECB identify everyday retail use cases before key design decisions are finalised. That could be particularly relevant as lawmakers in Brussels debate the legal framework for a digital euro and its role alongside existing payment systems.
The issue also touches on broader EU goals around competition and innovation in payments. Fintech groups warn that a sandbox dominated by incumbent players risks reinforcing existing market structures rather than fostering a diverse ecosystem built on top of public digital money.
From the ECB’s perspective, widening access raises governance, security, and operational concerns. But industry bodies argue these can be managed through controlled participation and technical safeguards rather than exclusion.
As the digital euro project moves closer to political decision-making, pressure from fintech associations is likely to intensify. Whether the ECB opts for a more open testing model could shape not only the pace of innovation, but also how inclusive Europe’s future digital currency ultimately becomes.