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

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

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

Although the digital euro currently has no legal status, its design will closely align with the relevant legislative framework being developed by the European Union. The European Central Bank stated that the final decision on whether to issue the digital euro will still need to wait for the relevant regulations to be passed and be determined by the ECB Governing Council.

One of the key reasons for the European Central Bank to advance the digital euro is concern that the development of private dollar stablecoins could impact European monetary sovereignty. In recent years, dollar stablecoins such as Tether USDT and Circle USDC have grown rapidly in global payment applications, drawing the attention of European regulators to financial autonomy.

However, the CBDC project still faces privacy controversies. Some privacy protection organizations worry that central bank digital currencies could lead to transaction tracking or even pose risks of restricted account access. In contrast, the United States has recently passed relevant laws restricting the Federal Reserve System from issuing a digital dollar before the end of 2030.

Currently, the European digital euro project is entering the actual testing phase, while EU legislative bodies are advancing the relevant legal framework. If the regulatory process goes smoothly, the digital euro could potentially be officially launched as early as 2029. (CoinDesk)