ECB picks firms including Deutsche Bank, Revolut for digital euro pilot
The European Central Bank has selected several major financial firms, including Deutsche Bank and Revolut, to participate in a 12-month pilot program for a digital euro. The project aims to test the currency's functionality for online and offline payments while addressing concerns regarding European monetary autonomy against private stablecoins.
Why it matters
This pilot represents a significant step toward the potential issuance of a central bank digital currency (CBDC) in the Eurozone, which could reshape regional payment systems and monetary policy.
The group, selected from among 50 applicants, includes Adyen, Deutsche Bank, Revolut, SumUp, UniCredit and Worldline, the ECB said on its website .
While legislation enabling the currency has yet to be finalized, the central bank is pushing forward with the project because it sees adoption of private dollar-backed stablecoins such as Tether's USDT and Circle Internet's USDC as a thre at to Europe’s monetary autonomy .
The 12-month pilot will test a beta version of the digital euro across the ECB and 19 euro-area national central banks. It will cover online and offline transfers between individuals, in-store payments and e-commerce purchases.
Although it won't have legal status, the currency will be close to the design set out in draft European Union legislation. The ECB’s staff, along with employees of national central banks, will act as consumers. Selected restaurants, cafeterias and online merchants will accept payments during the pilot.
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