European Central Bank calls for merchants to participate in digital euro pilot

The European Central Bank has launched a call for e-commerce and mobile-commerce merchants across the euro zone to join a year-long pilot of a digital euro, with the trial expected to start in the second half of 2027. The program will run a beta version of the currency that mimics the form and function of a retail CBDC but will not have legal-tender status during testing.

The pilot is designed to evaluate technical systems, operational processes and the user experience across a range of payment scenarios. ECB and national central bank personnel will act as users to test online and offline transfers between individuals, in-store transactions, e-commerce purchases and mobile-commerce payments using the prototype currency.

The bank has already selected 36 banks and payment firms to take part in earlier testing phases, and the pilot will include the ECB plus 19 national central banks. Any final decision to issue an actual digital euro would depend on new legislation and a separate determination by the ECB’s Governing Council, with 2029 noted as a possible target date for issuance.

Beyond technical readiness, the ECB emphasizes that merchant acceptance will be crucial for adoption. Industry observers cited by the source argue that merchants will need clear incentives—such as lower acceptance fees from payment service providers—to join in sufficient numbers and avoid creating friction for consumers. The ECB has also signaled urgency in advancing the project because it sees the expanding use of dollar-backed stablecoins like Tether’s USDT and Circle’s USDC as a potential challenge to Europe’s monetary sovereignty.