European Central Bank Invites Merchants to Test Digital Euro Payments
ECB asks merchants to join digital euro test
The European Central Bank (ECB) has called on e-commerce and mobile commerce merchants in the euro zone to join a digital euro pilot. The 12-month pilot will test a beta version of the currency that resembles the digital euro but is not legal tender, meaning it is not official money that must be accepted for all payments.
The pilot is scheduled to begin in the second half of 2027. The ECB is targeting possible issuance in 2029, subject to legislation and a separate Governing Council decision.
Key pilot details
- The pilot will test online and offline transfers between individuals, in-store payments, e-commerce purchases, and mobile-commerce payments.
- The trial will involve the ECB, 19 euro-area national central banks, and selected merchants. ECB and national central bank staff will act as users.
- The ECB selected 36 banks and payment firms to take part in the testing phase weeks before the call for merchants.
Why merchant acceptance matters
The call for merchants is about more than technical testing. A digital euro will need enough places to spend it if consumers are to use it, making merchant acceptance a commercial issue as well as a policy one.
Isadora Arredondo, vice president of global policy at Hedera, told CoinDesk via LinkedIn: “Many people think the digital euro’s success will depend on how governments and the public sector explain its usefulness. But the more difficult part will be making the project work commercially.”
Arredondo said merchants would need incentives to join in sufficient numbers and to ensure consumers do not face barriers when paying. One option, she said, could be for payment service providers to lower the fees merchants pay to accept digital-euro payments.
Why the ECB is moving ahead
Legislation that would enable the currency has not been finalised, but the ECB is pressing ahead. The bank views the adoption of private dollar-backed stablecoins, such as Tether's USDT and Circle Internet's USDC, as a threat to Europe's monetary autonomy. A stablecoin is a digital token designed to keep a steady value against another currency, in this case the U.S. dollar.
What is still unclear
The digital euro is not guaranteed. A possible 2029 issuance depends on legislation and a separate Governing Council decision.
