ECB Asks Online Stores to Join Digital Euro Testing
The ECB wants to test with online stores and mobile merchants whether the digital euro can also work commercially. The pilot touches on competition with stablecoins, Visa, and Mastercard.
Key Takeaways
- The ECB is calling on online stores and mobile merchants to join a pilot for the digital euro.
- The trial starts in the second half of 2027, lasts 12 months, and tests technology, processes, and user experience.
- The ECB sees the digital euro as a response to stablecoins and Europe’s dependence on foreign networks for payments.
The European Central Bank has called on online stores and mobile merchants in the eurozone to take part in a pilot for the digital euro. The trial is meant to test the technology, operational processes, and user experience of a beta version of the currency, which is similar to the digital euro but is not yet legal tender.
Pilot Gets More Participants
The call comes weeks after the ECB had already selected 36 banks and payment companies for the testing phase. The pilot will last 12 months and is scheduled for the second half of 2027. The bank still aims for a possible launch in 2029, but that depends on legislation and a separate decision by the Governing Council.
The trial includes the ECB, 19 national central banks from the eurozone, and selected merchants. ECB staff and staff from the national central banks will use the beta version themselves to test online and offline payments, including person-to-person payments, in stores, through e-commerce, and on mobile channels.
Why Merchants Matter
The ECB is making clear that the digital euro is not just a technical project. If consumers are really supposed to use the currency, there need to be enough places where they can pay with it. Merchant acceptance is therefore just as much a commercial issue as a policy one.
According to Isadora Arredondo, vice president of global policy at Hedera, success will not depend only on explanations from governments and the public sector. She said the harder part is making the project commercially workable. Arredondo pointed out that payment providers may need to offer incentives, for example by lowering costs for merchants.
Pressure on the European Payments Market
The ECB is moving ahead even though the legislation is not yet in place, because it sees the rise of private dollar-backed stablecoins such as Tether's USDT and Circle Internet's USDC as a risk to Europe’s monetary autonomy. More broadly, the digital euro also fits into the debate over Europe’s dependence on foreign payment networks like Visa and Mastercard.
For European crypto followers, that matters because the digital euro is one of the clearest examples of how regulators are responding to the growth of stablecoins and other digital payment forms. The pilot shows that the fight is not just about technology, but also about ease of use, distribution, and who controls payment traffic in Europe. Earlier, the selection of 36 banks and payment companies already showed that the ECB wants the testing phase to be broad, with an emphasis on both online and offline payments.
