European Central Bank selects 36 firms including Deutsche Bank and Revolut for digital euro pilot

Jul 14, 2026

The European Central Bank has selected 36 firms, including Deutsche Bank and Revolut, for a digital euro pilot starting in late 2027. The project is a strategic move to counter the dominance of dollar-backed stablecoins and assert monetary sovereignty. The 12-month test will involve a beta version of the currency, with a potential public issuance targeted for 2029, contingent on the passage of EU legislation.

Digital euro pilot selection

▪The 36 participants were chosen from a pool of more than 50 applicants who responded to a call for interest in March 2026.
▪ECB Executive Board member Piero Cipollone stated the strong market interest shows the private sector is ready to advance the digital euro project.
▪Selected firms include traditional banks like Deutsche Bank and UniCredit, and fintech companies such as Revolut, Stripe, Adyen, and Worldline.
▪Italy has the largest number of selected participants with seven companies, followed by Germany with five.
▪The European Central Bank (ECB) has selected 36 payment service providers for a 12-month digital euro pilot.

Monetary sovereignty vs dollar stablecoins

▪The ECB is advancing the digital euro project to counter a perceived threat to Europe's monetary autonomy from private, dollar-backed stablecoins.
▪Dollar-pegged tokens like Tether (USDT) and USD Coin (USDC) dominate the stablecoin market, while the largest euro-pegged token is over 400 times smaller than USDT.
▪ECB President Christine Lagarde has argued that a public digital currency should be used instead of private euro stablecoin proposals.

Pilot testing framework

▪The beta currency used in the pilot will be technically similar to the final product but will not have legal tender status.
▪Testing will involve the ECB, 19 euro-area national central banks, their staff as consumers, and selected merchants.
▪The pilot will test a beta version of the digital euro in online, offline, in-store, and e-commerce payment scenarios.
▪The 12-month pilot program is scheduled to begin in the second half of 2027.

Legislative timeline for approval

▪The European Parliament advanced the project by approving final negotiations on the law in a 416-169 vote on July 9, 2026.
▪A final decision on whether to issue the digital euro will be made by the ECB Governing Council only after the relevant EU legislation is passed.
▪The ECB aims to be ready for a potential first issuance of the digital euro in 2029, pending legislative approval.

Political opposition to project

▪The 169 votes against the digital euro legislation in the European Parliament suggest political opposition exists within the EU.
▪In contrast to the EU's approach, a U.S. law has barred the Federal Reserve from issuing a digital dollar through December 31, 2030.
▪Privacy advocates have raised concerns that central bank digital currencies could allow for transaction monitoring and give central banks power to block access to funds.