European Central Bank selects providers for two networks ahead of 2027 digital euro trial
Key Facts
The European Central Bank has selected two providers of connectivity services to link participants in the digital euro project with its platform, a step that prepares the technical infrastructure for the trial scheduled for the second half of 2027. The top-ranked group comprises Nexi Payments and Deutsche Telekom Business Solutions, while the second group consists of Telefónica de España, Telefónica Global Solutions and Indra Soluciones Tecnologías de la Información, according to the bank’s announcement. The two networks will connect participating payment service providers and national central banks to the digital euro service platform. They will also enable connectivity between the platform’s components, providing two connection routes for payment providers to choose from. The selection makes connectivity networks part of the project’s practical preparations, but does not constitute a decision to issue the currency.
The contract with the top-ranked group took effect on 28 September 2026 and initially covers the trial’s connectivity needs, according to the European Central Bank. The contract with the second-ranked group is scheduled to start in May 2027. The ranking gives participating providers a choice between the two networks, while the service agreements are designed to allow the bank to adjust the services required as the project’s needs evolve. This flexibility provides scope to align connectivity with different stages of the work, from the trial to later phases. The bank said both providers would be ready from 2029 to deliver the connectivity services needed for any potential issuance, subject to a Governing Council decision on the next phase.
The trial aims to test a prototype digital euro under real-world conditions, starting in the second half of 2027 and lasting 12 months. The bank said testing will cover technical functions, operations and user experience. A total of 36 payment service providers from the euro area were selected to participate, after the Eurosystem received more than 50 applications following a call for expressions of interest in March 2026. The group includes banks and non-bank providers, while the trial will be conducted at the European Central Bank and 19 national central banks across the euro area. ECB Executive Board member Piero Cipollone said the strong interest "reflects the private sector’s readiness to participate actively and advance the digital euro project quickly."
Planned uses include online and offline person-to-person payments, business payments at points of sale and in e-commerce, including mobile payments. The trial will use a prototype that is functionally and technically close to the concept set out in the draft legislation, but it will not have legal tender status. The bank says the digital euro is designed to complement cash, which will continue to coexist with it and with private electronic payment methods. On costs, the Eurosystem will bear the cost of establishing the digital euro scheme and its infrastructure, and will charge no scheme or processing fees. The bank says the compensation model should cover banks’ and payment service providers’ operating costs.
The selection of the two networks follows earlier stages of project development: the investigation phase began in 2021 and concluded in 2023, followed by the preparation phase, which began in November 2023 and ended in October 2025. The bank says current work focuses on technical readiness, market engagement and supporting the legislative process. The Council of the European Union adopted its position on the legislation on 19 December 2025, and the European Parliament adopted its position on 9 July 2026; trilogue negotiations between the European institutions have begun. The Eurosystem expects the legislation to be adopted by the end of 2026, but stresses that the Governing Council will not decide whether to issue the digital euro before its adoption. The bank aims to be ready for a first potential issuance during 2029 if the necessary regulation is adopted by the end of 2026.
Work is also under way to prepare merchants’ participation in the trial, after the bank opened a call on 15 September 2026 for e-commerce and mobile commerce retailers. The application deadline passed on 27 October, while applications are still being assessed. The outcome of the selection of participating merchants is due by early 2027. This adds a commercial component to payment tests that will cover points of sale and e-commerce. Technical and operational preparations are therefore advancing alongside completion of the legislative process, while a potential issuance in 2029 remains conditional on adoption of the regulation and a Governing Council decision.