The European Central Bank (ECB) on Tuesday shortlisted 36 payment service providers from across the eurozone to participate in trials of the digital euro. Analysts said that this move marks a key step in the bloc's efforts to introduce a central bank digital currency, reported Xinhua.
According to the ECB, the participants, including traditional banks, digital banks and payment companies, were selected from more than 50 applicants. They will work with the ECB and 19 euro-area national central banks, excluding Bulgaria and Malta, in a 12-month testing phase scheduled to begin in the second half of 2027.
The ECB said the pilot will focus on validating technical functions, streamlining operational processes and improving the user experience.
The trials will use a beta version of the digital euro that complies with draft legislation but does not have legal tender status. Involving central bank staff and selected merchants, the tests will cover online and offline peer-to-peer and consumer-to-business payments, including e-commerce, mobile wallets and in-store transactions using software-based point-of-sale technology.
If the European legislative framework is finalized on schedule, the digital euro could be officially launched as legal tender by 2029. Designed to complement rather than replace physical cash, it would support both online and offline peer-to-peer payments, including transactions that do not require intermediary services, the central bank said.
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Source: www.dailyfinland.fi
