Crypto: ECB Launches Digital Euro CBDC Pilot With 36 Partners

The ECB takes a decisive step in realizing its crypto project. On July 14, 2026, it announced the selection of 36 payment service providers to participate in the digital euro pilot. Analysis: the CBDC project moves from the design phase to operational testing. We tell you more in the following paragraphs!

A varied list of models between banks and crypto players

Since the beginning of the year, the ECB has been making multiple advances to successfully carry out its crypto project. In June, for example, it launched a banking test in Italy. In March 2026, it opened a call for expressions of interest for the operational phase of its CBDC project. Result: more than 50 applications submitted.

In this regard, ECB board member and head of the high-level euro digital working group Piero Cipollone said:

The strong market interest in this crypto project shows that the private sector is ready to engage actively and quickly advance the digital euro project to strengthen the European payment landscape.

The list of 36 selected providers includes traditional banks like Deutsche Bank and Revolut. But it also includes UniCredit, BPCE, Stripe, Adyen, SumUp, and Worldline. Italy leads with seven participants, including:

• Poste Italiane;
• Nexi Payments;
• Banca Sella;
• Banca Monte dei Paschi di Siena;
• Isybank;
• Numia.

It is followed by Germany with five players, then Portugal and Greece with three participants each.

According to the official release published by the ECB on July 14, the providers fall into two distinct profiles: distributors and acquirers. The former will give ECB staff and national central banks access to beta services of the digital euro. The latter will allow selected merchants to accept digital euro payments. Several actors will have both roles.

One strategic ambition: strengthen European monetary sovereignty

One of the drivers of this CBDC is the rise of dollar-backed crypto stablecoins. This mainly refers to Tether’s USDT and Circle’s USDC. The ECB indeed views their growing adoption as a threat to European monetary autonomy. A risk often publicly mentioned by President Christine Lagarde. According to her, these stablecoins could promote a form of “digital dollarization” of the continent.

In this context, the digital euro presents itself as Europe’s sovereign response to the expansion of private crypto in everyday payments. The reasoning is simple: if European citizens and merchants massively turn to dollar-denominated crypto stablecoins for their digital transactions, the ECB would lose part of its ability to steer the euro area’s monetary policy.

The CBDC thus aims to offer a European alternative backed by central bank money. It would be able to directly compete with usages that crypto has widely popularized over the past years (notably in cross-border payments and online commerce).

CBDC vs crypto: the European trajectory contrasts with that adopted by the United States

In early July 2026, a US law came into effect prohibiting the Fed from issuing or creating a digital dollar until December 31, 2030. A decision welcomed not only by supporters of crypto and decentralized currencies but also by some defenders of individual freedoms. They fear that a CBDC would enable increased surveillance of transactions or arbitrary blocking of access to money by a central authority.

In contrast, Europe chooses to move forward: a committee of the European Parliament approved advances last month on the legislative framework governing the CBDC, while the ECB enters the testing phase.

This strategic divergence illustrates two opposing visions: regulatory caution in the US versus deliberate acceleration in the euro area. Each reflects distinct political and monetary priorities.

What are the next steps for the crypto and banking ecosystem?

The CBDC pilot will start in the second half of 2027 for a duration of 12 months. This phase will involve the ECB as well as 19 national central banks of the euro area, notably:

• in Germany;
• in France;
• in Italy;
• in Spain;
• in the Netherlands.

It will test person-to-person payments (both online and offline) as well as payments at physical merchants and e-commerce, involving central bank staff and partner merchants such as cafeterias and restaurants.

The beta version used will remain close to the design planned by the European legislation under discussion but will have no legal value during this phase.

The final decision on the issuance of this digital euro will depend both on the adoption of the European legislative framework and a vote by the ECB Governing Council. Potential issuance is expected in 2029. This still allows time for the crypto and banking ecosystem to adapt to this new monetary environment.

In any case, the ECB has just turned its CBDC project into operational reality. If the tests and legislative framework are successful, the digital euro could inaugurate a new phase where crypto, public currencies, and stablecoins coexist sustainably. Story to follow…