ECB Calls On Merchants To Join Digital Euro Pilot Program

The European Central Bank asked e commerce and mobile commerce merchants across the euro zone on Tuesday to take part in a 12-month digital euro pilot, part of preparations for a possible retail central bank digital currency by 2029.

What The Pilot Will Test

The trial will use a beta version resembling the digital euro, though it will not carry legal tender status. Testing will cover online and offline transfers between individuals, in store payments, e commerce purchases and mobile payments, involving the ECB, 19 national central banks and participating merchants.

The pilot follows the ECB’s earlier selection of 36 banks and payment firms for the testing phase and is scheduled to begin in the second half of 2027, with actual issuance still dependent on pending legislation and a future decision by the bank’s governing council.

Merchant Adoption Seen As A Key Challenge

Industry observers note that recruiting merchants involves more than technical testing, since a digital euro’s success will ultimately depend on how widely it can be spent. A policy expert at blockchain firm Hedera said merchants will need real incentives to participate, such as lower payment processing fees, to ensure the currency gains traction commercially rather than just in pilot conditions.

The ECB has pushed forward with the project partly out of concern that dollar-backed stablecoins like USDT and USDC could weaken Europe’s monetary independence if left unchecked.