The European Central Bank has set out detailed plans for a real-world digital euro pilot that will run for 12 months from the second half of 2027, marking a significant step from conceptual design toward technical and operational readiness. The pilot, presented during a digital euro focus session hosted by the European Central Bank, will involve real transactions by Eurosystem staff and selected merchants, while remaining dependent on the outcome of EU legislation.
According to ECB officials, the pilot is intended to validate both the functional design and the underlying infrastructure of a potential digital euro before any broader rollout. It follows the Governing Council’s decision to move the project into a new “technical readiness” phase and reflects growing pressure to demonstrate feasibility beyond studies and prototypes.
Real transactions, but not legal tender
Despite involving actual payments, the pilot will not use a legally defined digital euro. Instead, transactions will rely on the existing PSD2 framework and will be classified as scriptural money, meaning they will not carry legal tender status. ECB representatives stressed that this approach allows real economic activity to be tested while legislation remains under negotiation.
The pilot will be conducted in a controlled Eurosystem environment, with participation limited to roughly 5,000–10,000 ECB and national central bank staff. Between 15 and 25 merchants providing everyday services such as coffee, lunch, or event-related sales will be involved.
Four use cases at the core
The ECB has selected four use cases designed to cover the main expected features of a future digital euro. Two focus on person-to-person payments, including alias-based transfers using identifiers such as phone numbers, and offline peer-to-peer payments using NFC technology. The latter is intended to test cash-like privacy and resilience in scenarios without internet access.
The remaining use cases cover consumer-to-business payments. These include in-store payments via NFC-enabled soft POS solutions and an e-commerce flow where users authenticate payments through a PSP app or a Eurosystem-provided digital euro app.
Infrastructure and PSP participation
At the centre of the pilot is the Digital Euro Service Platform, which will handle issuance, redemption, and instant settlement between the central bank and commercial bank money. The Eurosystem will provide its own digital euro app as well as a software development kit allowing payment service providers to integrate digital euro functionality into their existing banking or wallet applications.
A limited number of PSPs will be selected following a call for expressions of interest, expected to be published in March. Selection will be based on eligibility criteria such as EU licensing, technical capability, and the ability to support all pilot use cases across multiple jurisdictions. PSPs will not be financially compensated for participation, but ECB officials framed the pilot as a strategic opportunity to shape the future design of European public money.
What this means
The pilot signals a shift from abstract debate to operational testing at a time when Europe is seeking to reduce reliance on non-European payment infrastructures. While any issuance decision remains several years away, with ECB officials pointing to 2029 as a theoretical earliest date, the pilot will directly inform design choices, technical standards, and the digital euro rulebook.
By grounding the project in real user behaviour and merchant acceptance, the ECB aims to reduce execution risk and strengthen its case to lawmakers. The outcome will likely play a critical role in shaping whether and how a digital euro eventually becomes part of everyday payments across the euro area.