The European Central Bank has launched a call for expressions of interest inviting payment service providers to participate in a pilot programme for the digital euro, marking a new stage in the development of the euro area’s proposed central bank digital currency. The initiative aims to test digital euro payment infrastructure in a controlled environment and prepare the European payments ecosystem for a potential future launch.
According to the ECB’s announcement on 5 March 2026, the pilot is expected to begin in the second half of 2027 and run for roughly one year. While the system will replicate the architecture of a future digital euro, the instrument used during the pilot will not be legal tender. Instead, the exercise will simulate digital euro payments to evaluate the technology, operational processes and user experience before any formal issuance decision.
The pilot will be open to a range of payment service providers, including banks, fintech companies, payment institutions and electronic money firms. By inviting industry participation at this stage, the Eurosystem aims to ensure that the digital euro infrastructure can integrate smoothly with existing payment systems and commercial services across the euro area.
Real transactions in a controlled environment
Unlike earlier laboratory-style testing, the upcoming pilot will include real payment transactions involving a limited group of users and merchants. Participants are expected to include Eurosystem staff and selected retailers operating in ECB offices or related facilities. The goal is to observe how digital euro payments perform in everyday situations such as purchasing goods or services.
The pilot will operate in two main environments. The first is a technical testing platform where payment service providers can integrate their systems, connect to the digital euro infrastructure and test application programming interfaces. This phase focuses on interoperability, system performance and operational readiness.
The second environment simulates real-life payments. In this setting, users will be able to make everyday transactions using digital euro payment tools while the ECB monitors performance, reliability and user behaviour.
The system will support several payment methods designed to mirror the future digital euro ecosystem. These include mobile wallets, QR code payments, card-based payments and online checkout options. The ECB has emphasised that the digital euro is intended to integrate with existing payment channels rather than replace them.
Offline payments and privacy features
A key component of the pilot will be the testing of offline payments. This feature allows transactions to take place without an internet connection, with payments recorded locally and synchronised later once connectivity is restored. The ECB has repeatedly described offline capability as essential for resilience and for maintaining some of the characteristics of cash in a digital environment.
The pilot will also reflect the two-tier distribution model planned for the digital euro. Under this structure, the ECB and the Eurosystem will operate the core infrastructure and issue the digital currency, while banks and payment providers will handle user wallets, customer onboarding and regulatory compliance.
Privacy safeguards outlined by the ECB will also apply during testing. Payment service providers will manage user identification, while the Eurosystem infrastructure will process only pseudonymised transaction data. The ECB says this approach is designed to minimise the amount of personal information visible at the central bank level.
Preparing Europe’s payment ecosystem
Strict limits on wallet balances, transaction values and user numbers will apply throughout the pilot. These restrictions are intended to ensure financial stability and keep the programme focused on operational testing rather than large-scale payment flows.
Feedback gathered during the pilot will play a central role in shaping the final design of the digital euro. The ECB plans to assess system performance, user experience, merchant integration and overall reliability before making further decisions about implementation.
The initiative represents one of the clearest signals so far that the digital euro project is entering a more operational phase. While the ECB Governing Council has not yet decided whether to issue the digital euro, preparations are advancing alongside ongoing legislative discussions in the European Union.
The pilot will provide policymakers, banks and payment providers with their first opportunity to observe how a digital euro system functions in practice. For the Eurosystem, the results will help determine whether the proposed currency can operate securely and efficiently within Europe’s complex payments landscape.
Related: ECB Defines How the Digital Euro Will Work in Real Payments Pilot