Selection of Two Digital Euro Network Consortia Paves Way for Trial Targeting 36 Payment Providers in 2027
Key Facts
The European Central Bank announced on 30 October 2026 that it had selected two consortia to provide digital euro network services: one comprising Telefónica and Indra Soluciones Tecnologías de la Información, and the other Nexi and Deutsche Telekom. The bank said the providers would supply the connectivity needed to link payment service providers and national central banks to the digital euro services platform, and enable communication among its components. The selection places telecoms infrastructure among the project’s technical preparations, but does not mean that a single entity has been chosen to issue or operate the currency. The scope includes networks, security, integration and digital identity, according to Telefónica’s official announcement. The Spanish consortium is therefore one of two providers, contrary to what appeared in the initial version of the report.
The European Central Bank set different start dates for the two network contracts: the first provider’s contract took effect on 28 September 2026 to cover the trial’s initial connectivity needs, while the contract for the second provider, comprising Telefónica and Indra, begins in May 2027. The arrangement links the start of initial connectivity work with the completion of a broader network as the project advances. The bank’s announcement did not disclose the contract’s value, so no financial figure attributable to the consortium is available in the information published here. EL7 data show TEFOF shares closed at 3.75 on 29 October 2026, without specifying the price unit or currency. On the same day, the European Central Bank left its three interest rates unchanged at 2.50% for the deposit facility, 2.65% for main refinancing operations and 2.90% for the marginal lending facility.
The connectivity contracts are part of a broader trial for which the European Central Bank selected 36 payment service providers from the euro area, after the Eurosystem received more than 50 applications. The trial is scheduled to begin in the second half of 2027 and run for 12 months. Participants will use a trial version of the digital euro that is functionally and technically close to the concept set out in the draft legislation, but will not have the status of legal tender. Testing will cover person-to-person payments and online and offline payments to merchants. ECB Executive Board member Piero Cipollone said, "Strong market interest in the trial shows the private sector’s readiness to participate actively and advance the digital euro project quickly to strengthen the European payments landscape."
The project is based on the stated aim of strengthening the European payments landscape, as the European Central Bank has said that more than 60% of euro area countries do not have a national card payment scheme for in-store purchases. The bank linked this gap to fragmentation in digital payments and consumers’ reliance on non-European companies. The bank says the digital euro will complement banknotes and coins, not replace them; cash will remain legal tender and coexist with the digital currency and existing private electronic payment methods. Against the backdrop of monetary policy, the bank left interest rates unchanged on 29 October, and its Governing Council said it was committed to stabilising inflation at its 2% medium-term target. It also said higher energy prices add to inflation risks and weigh on the growth outlook, and that interest rate decisions will remain data-dependent and be taken meeting by meeting.
The final timetable for the digital euro remains tied to European legislation. After the Council of the European Union adopted its position on the draft legislation on 19 December 2025, and the European Parliament adopted its position on 9 July 2026, trilogue negotiations began among the European Commission, Parliament and Council. The European Central Bank says it aims to be ready for a first possible issuance during 2029, provided the necessary regulation is adopted by the end of 2026. It added that no decision to issue the currency would be taken before the regulation is adopted. As the payment provider trial scheduled for the second half of 2027 approaches, the network contracts form part of the project’s technical build-out along the path to that date and then to a possible issuance in 2029.