The European Central Bank is accelerating a pilot project to introduce a digital euro, Cointelegraph reported on Feb. 18. ECB Executive Board member Piero Cipollone said the ECB plans to start selecting EU payment service providers in early 2026 and run a 12-month pilot from the second half of 2027.

At a meeting of the Italian Banking Association, Cipollone stressed that "the digital euro will be designed to protect European card systems and ensure banks remain at the core of the euro zone payment system." EU-licensed payment firms will become the centre of digital euro distribution, and participating firms can build experience in payments, settlement and liquidity management in advance.

The digital euro will be pursued in a way that protects European payment projects such as Italy's Bancomat card network and Spain's Bizum P2P system. Cipollone said that "not only stablecoins but other private solutions can also threaten the role of bank payments" and that "reducing reliance on international card networks and maintaining the competitiveness of local systems is key." Merchant fees on the digital euro network will be set lower than international payment networks but higher than domestic payment systems.