European Central Bank updates on digital euro development and pilot plans

The European Central Bank (ECB) held an Executive Committee meeting on March 6, 2026, to discuss the progress of the digital euro initiative.

The project has completed the investigation phase (October 2021 – October 2023), focused on concept definition, technical exploration, and design proposals. Since November 2025, preparations are ongoing based on a flexible, modular approach, aiming for potential issuance in 2029, subject to legislative adoption in 2026.

Current efforts include advancing technical readiness, market engagement, and supporting legislative processes. A pilot exercise involving real transactions is planned to start in mid-2027, with a 12-month pilot phase involving selected payment service providers (PSPs), merchants, and Eurosystem staff.

Stakeholder engagement has included a year-long FitE market consultation and workshops to explore improvements in competitiveness, cost mitigation, and synergies with existing payment systems. The digital euro will be distributed primarily through banks and PSPs, with safeguards such as holding limits and no remuneration for holdings for businesses.

The proposed compensation model involves no scheme or processing fees for issuing and acquiring banks, with capped merchant service charges and inter-PSP fees. The digital euro will coexist with private solutions, including virtual wallets and co-badging with physical cards, to foster acceptance and integration within existing payment infrastructures.

Additional supporting materials include reports on progress, FAQs, and assessments of financial stability impacts. For further information, contact: digitaleuro@ecb.europa.eu.