ECB seeks merchants for 12-month digital euro pilot

CoinDesk reported that the European Central Bank is recruiting e-commerce and mobile payment providers to participate in a 12-month digital euro trial scheduled to start in the latter half of 2027. The central bank previously chose 36 financial institutions and payment companies for the testing phase, a move made weeks prior to opening the call to merchants.

The testing process will involve participating merchants, the ECB, and 19 euro-area national central banks evaluating online, offline, in-store, and mobile transactions. Staff from the ECB and national banks will also act as users to test transfers between individuals and purchases. The currency used in the pilot will be a beta version that mirrors the digital euro’s design but will not serve as legal tender.

The ECB has set a target for potential issuance of the digital euro in 2029, contingent on legislation and a separate Governing Council decision. Isadora Arredondo, vice president of global policy at Hedera, said via LinkedIn that while public explanation of the currency’s usefulness is important, the greater challenge lies in making the project work commercially. She noted that merchants require incentives to join in sufficient numbers to prevent payment barriers for consumers, suggesting that payment service providers could reduce the fees associated with accepting digital euro payments. The ECB regards the adoption of private dollar-backed stablecoins, including Tether's USDT and Circle Internet's USDC, as a risk to Europe’s monetary autonomy.