ECB sets digital euro pilot for second half of 2027

The European Central Bank plans to begin a digital euro pilot in the second half of 2027, Executive Board member Piero Cipollone said at a European Parliament hearing in Brussels on 10 November. The pilot will test technical functions, operational processes and user experience with a beta version that will not have legal tender status.

The test will involve Eurosystem staff, selected payment service providers and merchants offering everyday services, such as canteens at the ECB and participating national central banks. In July, the ECB selected 36 providers from more than 50 applicants. The group includes banks and non-bank firms of different sizes, business models and locations.

The ECB opened a separate call in September for online and mobile merchants to test remote payments. It said the final selection would be announced early in 2027.

Cipollone said the date of a possible first issuance can be set only after the EU adopts the Single Currency Package, which includes proposals on the legal tender of euro cash and the legal framework for a possible digital euro. Negotiations are ongoing. He said a swift conclusion could allow the package to be adopted by the end of 2026, as envisaged in the One Europe, One Market Roadmap.

The ECB says the legal framework is needed to finalise the digital euro’s design and rulebook. Cipollone said it plans to make relevant use cases available from the first issuance. Feedback from market participants indicates that a gradual rollout would give them time to adapt. He added that lawmakers intend to provide legal clarity on whether shops could adopt the system in phases.

Pontes and new banknotes

Cipollone also cited Pontes, a platform that connects market distributed-ledger technology platforms with the Eurosystem’s TARGET Services. The platform settled a €1 billion bond issuance by the European Stability Mechanism on 2 November, its first digitally native benchmark bond. Eighteen market participants and platform operators joined on the day Pontes launched in September.

The ECB is considering designs for a new euro banknote series. A public survey of ten shortlisted proposals, based on the themes “European culture” and “Rivers and birds”, received almost 10 million responses, Cipollone said. The results will inform a Governing Council decision on the final design concept, expected around the end of 2026. The first denominations are expected to enter circulation in the early 2030s.

Cipollone said the ECB supports rules to ensure cash is accepted, accessible across the euro area and supported by resilient infrastructure. He said the digital euro should sit alongside cash as digital payments grow.