Digital Euro Benefits and Pilot Plans

ECB Press Releases

Published March 21st, 2026

Detected March 21st, 2026

Summary

The European Central Bank (ECB) outlined the benefits and pilot plans for a digital euro, emphasizing its role in enhancing European payment autonomy and resilience. A 12-month pilot program is scheduled to begin in the second half of 2027, involving selected payment service providers, merchants, and Eurosystem staff.

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What changed

The European Central Bank (ECB) has published a notice detailing the rationale and upcoming pilot phase for a potential digital euro. The document highlights the digital euro's benefits, including strengthening Europe's strategic autonomy and resilience in critical payment infrastructures, complementing cash, and offering consumers and merchants lower fees and improved payment experiences. It also notes Bulgaria's recent accession to the euro area. A 12-month pilot program is planned to commence in the second half of 2027, focusing on four key use cases in a controlled Eurosystem environment, with participant selection beginning in early 2026.

While this notice is informational and does not impose immediate compliance obligations, regulated entities involved in payment services, retail, and e-commerce should monitor the progress of the digital euro initiative. The ECB is preparing legislative proposals, and the selection process for pilot participants will begin in Q1 2026. Companies should anticipate potential future integration requirements and opportunities related to the digital euro, particularly as the pilot phase and legislative preparations advance.

What to do next

Monitor ECB communications regarding digital euro legislative preparations and pilot program updates.
Prepare for potential participation in the digital euro pilot program by tracking the payment service provider selection process starting in Q1 2026.
Assess potential impacts of a digital euro on existing payment services and business models.

Source document (simplified)

BRIE-CITRIS, Bruegel and the Bank of Finland Joint Workshop21 March 2026Piero CipolloneMember of the Executive Board of the ECBDigital euro – why?

European retail payments: dominated by non-European card schemes15 out of 21 countries do not have a significantly used domestic solution for digital payments in shops. Nearly two-thirds of euro area card transactions are processed by international card schemes. The digital euro would offer an additional way to pay across the euro area – for all situations.>Map based on data in Table 1 of Progress on the preparation phase of a digital euro – closing report, ECB, October 2025. 1) Bulgaria joined the euro area on 1 January 2026 – the country has a domestic solution (bcard) for digital payments in shops. Data collection is in progress; 2) >10 percent market share; 3) >50 percent market share; 4) Report on card schemes and processors, ECB, February 2025. Relevant domestic option presentNational championsMarket share of domestic solutions for digital payments in shops

As payments move online, public money must followAccess to public moneyComplementing cashFreedom of choice between cash and digital paymentsThe digital euro: a digital form of cash1) Study on the payment attitudes of consumers in the euro area (SPACE), ECB, December 2024 & December 2020.Finland is a frontrunner in digital payments adoption0%20%40%60%80%Cash Cards Mobile Payments in shops by numberEuro area (2024) Finland (2024)2019 levels

The urgency of preserving the resilience and autonomy of Europe’s critical infrastructures is clear. Ensuring strategic autonomy and resilience in daily payments is just as urgent. With the digital euro, Europe can strengthen its autonomy and resilience

Consumers• An i

ConsumersMerchants• An i

ConsumersMerchantsPayment service providers• An i • Lower fees and stronger negotiation power, especially for small businesses• Instant receipt of funds • Maintaining client relationships • Fair remuneration ens ured by the compensation model

Domestic solutions adopt digital euro standards and achieve pan-European reach without heavy investment A public-private partnership: European rails for digital payments Domestic and regional solutions Digital euro

Prepare for subsequent market roll-out Objectives of the pilot • A 12-month pilot, starting in the second half of 2027, conducted in a controlled Eurosystem environment involving real-world transactions. • A limited number of payment service providers, merchants and Eurosystem staff will participate. Payment service provider selection will start in the first quarter of 2026. • Four use cases will be tested: • The Eurosystem will gather and apply feedback continuously throughout the pilot to further optimise the digital euro. Test readiness before scaling upImprove go-to-market strategyImprove digital euro value proposition The Eurosystem pilot aims to fine-tune the digital euro’s design and ensure its technical readiness1. Online person-to-person transactions using an alias or access number2. Offline person-to-person transactions with near field communication3. Online person-to-bus iness transactions at the point of sale via near field communication 4. Online person-to-bus iness transactions in electronic or mobile commerce with an alias or access number

Legislative preparations in full swing The decision on whether to issue the digital euro will only be considered by the ECB’s Governing Council once the legislation has been adopted.The ECB appreciates: • the agr eement reached by the Council of the European Union’s agreement on its negotiating position on the proposed digital euro Regulation;• the cont ributions of several Member States, including Finland, in highlighting how the digital euro can enhance the resilience of euro area payments; • the di scussions in the European Parliament on the proposal, expected to reach a conclusive position in May.

Thank youAdditional supporting materials:• Progress on the preparation phase of a digital euro – closing report • Updated digital euro FAQ • Webpage: Digital euro and privacy • ECB opinion on the EU Commission’s digital euro legislative proposal • Digital euro one-pager• Digital euro Li nkedIn pageYou can reach us at digitaleuro@ecb.europa.eu