European Central Bank Invites E-Commerce Merchants to Join Digital Euro Pilot Program

The European Central Bank (ECB) has officially invited e-commerce and mobile commerce merchants in the Eurozone to participate in a pilot program for the digital euro, which aims for potential issuance in 2029. This initiative is designed to test the technology, operational processes, and user experience of a test version of the digital euro, which will not be considered legal tender. The pilot is set to last for 12 months, commencing in the second half of 2027, although the final issuance will depend on further legislative and governing council decisions.

In preparation for this pilot, the ECB has selected 36 banks and payment institutions to take part in the testing phase. The pilot will involve collaboration between the ECB, the central banks of the 19 Eurozone countries, and the chosen merchants. Central bank staff will act as users to evaluate various scenarios, including online and offline transfers, in-store payments, and transactions in e-commerce and mobile commerce environments.

ECB President Christine Lagarde emphasized the importance of the digital euro for maintaining European monetary sovereignty and reducing reliance on dollar-pegged stablecoins. The ECB has expressed concerns that the growing popularity of private dollar stablecoins, such as Tether's USDT and Circle's USDC, could undermine European monetary autonomy. Isadora Arredondo, Vice President of Global Policy at Hedera, highlighted that the success of the digital euro will hinge on its commercial viability, suggesting that merchants will need incentives and that payment service providers may need to consider lowering transaction fees for those accepting digital euro payments.

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Source: KLEA News