Digital Euro Trial Targets Merchants
The European Central Bank (ECB) has opened its upcoming digital euro pilot to e-commerce and mobile-commerce merchants across the euro zone, adding businesses to a testing program that could precede a retail central bank digital currency launch in 2029.
The trial is expected to run for 12 months beginning in the second half of 2027. Participants will use a beta version of the digital euro to test payments made online, through mobile devices, at physical stores and between individuals.
The beta currency will be similar to the proposed digital euro but will not carry legal-tender status. The ECB plans to use the exercise to examine the technology, operational framework and user experience before making a decision on a broader rollout.
Merchant Acceptance Could Shape Adoption
The ECB’s decision to involve merchants reflects a broader challenge: consumers are unlikely to use a digital euro widely unless they have enough places where they can spend it.
Isadora Arredondo, vice president of global policy at Hedera, told CoinDesk via LinkedIn that making the digital euro commercially viable could be more difficult than convincing governments and consumers of its usefulness.
Arredondo said merchants would need sufficient financial incentives to participate while customers would need to be able to complete payments without encountering barriers.
She suggested that payment service providers could potentially encourage participation by reducing the fees merchants are charged for accepting digital-euro payments.
36 Firms Already Part of Testing
The merchant invitation follows the ECB’s selection of 36 banks and payment companies to participate in the pilot.
The testing program will bring together the ECB, all 19 euro-area national central banks and selected merchants. Staff from the ECB and national central banks will participate as users during the trial.
The tests will include online and offline transfers between individuals, purchases at physical retailers, e-commerce transactions and mobile-commerce payments.
The pilot is scheduled to begin in the second half of 2027 and last 12 months. The ECB has set 2029 as its target for possible issuance, although that timeline depends on legislation being finalized and a separate decision by the Governing Council.
Private Stablecoins Drive ECB Concerns
The legislation required to establish the digital euro has not yet been completed, but the ECB continues to advance its preparations.
The central bank has expressed concern about the increasing use of privately issued dollar-backed stablecoins, including Tether’s USDT and Circle Internet’s USDC.
From the ECB’s perspective, wider adoption of these assets could increase Europe’s dependence on dollar-denominated private payment instruments and pose a challenge to its monetary autonomy. The digital euro is therefore also being developed as a way to strengthen Europe’s control over its own digital payments infrastructure.
