European Central Bank launches digital euro pilot, 36 institutions including Deutsche Bank and Revolut selected

Odaily Planet Daily News The European Central Bank has announced the selection of 36 banks and payment companies to participate in the digital euro pilot project, preparing for a potential central bank digital currency (CBDC) issuance in 2029. Selected institutions include Deutsche Bank, Revolut, Adyen, SumUp, UniCredit, and Worldline. The list was narrowed down from 50 applicants.

The digital euro pilot is set to launch in the second half of next year and will run for 12 months, testing the Beta version of the digital euro across various payment scenarios, including: online person-to-person transfers, offline payments, in-store payments, and e-commerce payments. The pilot will cover the European Central Bank and the central banks of 19 eurozone countries. ECB employees and staff from these national central banks will participate as users, while some restaurants, cafes, and online merchants will support digital euro payments.

Although the digital euro does not yet have legal status, its design will closely align with the relevant legislative framework currently being developed by the European Union. The European Central Bank stated that the final decision on whether to issue the digital euro will depend on the adoption of relevant regulations and a decision by the ECB's Governing Council.

One of the key reasons for the European Central Bank's push for the digital euro is concern that the growth of private dollar-backed stablecoins could impact Europe's monetary sovereignty. In recent years, dollar stablecoins such as Tether (USDT) and Circle (USDC) have grown rapidly in global payments, drawing the attention of European regulators to financial autonomy.

However, the CBDC project still faces privacy controversies. Some privacy advocacy groups worry that a central bank digital currency could lead to transaction tracking and even pose risks of restricted access to accounts. In contrast, the United States has recently passed legislation limiting the Federal Reserve System from issuing a digital dollar before the end of 2030.

Currently, Europe's digital euro project is entering its practical testing phase, while EU legislative bodies are advancing the relevant legal framework. If the regulatory process proceeds smoothly, the digital euro could be officially launched as early as 2029. (CoinDesk)