Digital Euro Test Phase Set for Late 2027 as ECB Launches Provider Hunt in Early 2026
Starting this quarter, the ECB will commence the process of choosing payment providers licensed in the EU for a digital euro trial program, planning a year-long testing period beginning in late 2027.
The European Central Bank (ECB) continues advancing toward launching a trial program for its digital euro initiative, with member of the Executive Board Piero Cipollone revealing strategies to commence the selection process for payment service providers (PSPs) during early 2026, preceding a year-long testing phase slated for the latter half of 2027.
On Wednesday, Cipollone addressed an executive committee gathering at the Italian Banking Association. During his remarks, he indicated that the trial program would include a restricted group of payment service providers, retail merchants and personnel from the Eurosystem. The process of choosing participating providers is anticipated to commence during the first quarter of 2026.
According to Reuters, Cipollone explained that the digital euro framework will be constructed to safeguard European card payment schemes while maintaining banks' central position within the Eurozone's payment infrastructure.
Trial program may offer PSPs competitive edge
Payment service providers holding licenses within the European Union will serve as the foundation for digital euro distribution, according to Cipollone. For those PSPs chosen to participate, the trial program presents an early-preparation benefit in advance of a possible wider implementation, which includes practical experience managing onboarding procedures, settlement operations and liquidity oversight.
Cipollone went on to note that participation additionally delivers enhanced understanding regarding future infrastructure requirements, regulatory compliance obligations and personnel expenditures, enabling companies to strategize their capital investments with greater precision.
Through direct assistance from the Eurosystem combined with the opportunity to contribute input during the design phase, trial participants stand to obtain both practical operational knowledge and authority in shaping the final form the digital euro will ultimately assume.
Banking sector faces threats beyond stablecoins, Cipollone warns
The trial program for the digital euro aims to shield domestic European payment infrastructures, including Italy's Bancomat card system and Spain's Bizum person-to-person payment platform.
Banks could lose their role in payments not just because of stablecoins but also due to other private solutions
Cipollone stated, highlighting Europe's substantial dependence on global card payment networks such as Visa and Mastercard.
He further explained that the digital euro framework would be designed to maintain the competitive position of regional payment schemes.
The cap on the fee that merchants will pay on the digital euro network will be lower than what the international payments network, normally the costlier, charge, but higher than what domestic payments scheme, normally the cheapest, charge
Cipollone stated.
Cointelegraph reached out to the ECB seeking additional comments regarding the PSP selection process but had not received a response at the time of publication.
This announcement represents a significant milestone in the digital euro trial program following the ECB's official transition to the subsequent phase of the initiative in October 2025, with a target launch date of 2029.
At that time, the central bank anticipated that a trial exercise might begin in 2027, contingent upon the establishment of necessary legislation throughout 2026.