ECB taps Deutsche Bank as digital euro pilot defies US CBDC push

The European Central Bank has selected 36 payment firms, including Deutsche Bank, for a digital euro pilot as Europe presses ahead with its CBDC plans.

According to a July 14 announcement from the European Central Bank (ECB), the selected payment service providers will participate in a 12-month pilot beginning in the second half of 2027. The testing program will involve the ECB, 19 national central banks and private-sector firms as officials continue preparations for a possible digital euro launch by 2029.

Among the companies chosen for the program are Deutsche Bank, Revolut Bank, Stripe and UniCredit. The pilot will examine the digital euro’s technical performance, operational processes and user experience using a beta version of the currency that will not have legal tender status.

ECB Executive Board member Piero Cipollone said the level of participation from payment providers demonstrates that private-sector firms are prepared to contribute to the project and support the development of Europe’s payments infrastructure.

The pilot expands testing before any launch decision

During the testing phase, some participating firms will allow users to create beta digital euro accounts and make payments through the experimental platform. According to the ECB, other providers will focus on additional services linked to the pilot instead of customer-facing features.

The central bank also said staff at participating national central banks will conduct person-to-person and person-to-business beta transactions. Those payments will be tested across physical retail locations, including Software Point of Sale systems, as well as e-commerce platforms and mobile payment channels.

The ECB stated that the pilot forms part of its ongoing preparatory work and does not represent a final decision to issue a digital euro. Officials have said any eventual launch would depend on the completion of the legislative process within the European Union.

Meanwhile, the European Parliament has already voted in favor of digital euro legislation, allowing work on the proposed CBDC framework to continue alongside the technical testing program.

Europe advances while the US continues opposing a CBDC

As European institutions continue developing a digital euro, policymakers have said the project could reduce dependence on payment networks such as Visa, Mastercard and Apple Pay. At the same time, the proposal has drawn criticism from some observers who have raised concerns over financial privacy and transaction monitoring.

The digital euro initiative is also progressing alongside the European Union’s implementation of the Markets in Crypto-Assets (MiCA) framework, under which several crypto companies, including Ripple, OKX and Coinbase, have received regulatory approval to operate in the region.

Across the Atlantic, the policy direction remains different. As crypto.news reported last week, President Donald Trump refused to sign the 21st Century ROAD to Housing Act, even though the legislation includes a provision preventing the U.S. Federal Reserve from issuing a central bank digital currency through 2031 and has remained on course to become law.

According to a Truth Social post cited by crypto.news, Trump said he was withholding his signature because the Senate had not yet passed the Save America Act, legislation he has repeatedly urged lawmakers to approve. The outlet also reported that Trump had delayed signing the same housing bill a month earlier for the same reason, describing the voting measure as a higher legislative priority.

Taken together, the developments leave the world’s two major economic blocs pursuing different paths, with the ECB expanding preparations for a possible digital euro while the United States continues debating whether the Federal Reserve should be allowed to issue a CBDC at all.