The Eurosystem plans a new round of testing in 2027 as part of preparations for the potential introduction of the digital euro, a central bank digital currency (CBDC). Market participants will be able to test e-receipts, conditional payments, and new payment app features. They will also explore the use of artificial intelligence (AI) in payments and potential applications of the digital euro in public services.
The European Central Bank (ECB) opened applications for a new round of digital euro innovation initiatives. The program is divided into 2 tracks: hands-on experimentation and the exploration of emerging technologies. The experimentation track will run from January through June 2027. Selected organizations will receive technical specifications and access to a dedicated testing environment for Europe’s central bank digital currency, where they can develop and test prototypes of new payment solutions.
The main areas of experimentation will include:
- integrating e-receipts into digital euro transactions;
- multi-payer and multi-payee transactions;
- conditional payments that are automatically executed when predefined conditions are met;
- new payment app features, including behavioral biometrics, AI-powered tools, and budget management tools.
The ECB stressed that conditional payments don’t amount to “programmable money.” The digital euro isn’t designed to impose restrictions that predetermine where, when, or for what purposes holders can spend their funds.
In the exploration track, the Eurosystem plans to examine emerging payment technologies and use cases, including AI agents, micropayments, and automated machine-to-machine transactions. Another area will focus on the use of the CBDC in public services, including payments for transportation, utilities, parking, and electric vehicle charging, as well as applications in smart-city infrastructure.
When selecting participants, the ECB will consider the practical value and innovative aspects of proposed use cases, applicants’ expertise, and alignment with the digital euro’s core principles. Participation in hands-on testing will also require adequate technical expertise and development resources. Participation will be voluntary, and the Eurosystem won’t provide financial remuneration or reimburse expenses.
Eligible applicants include FinTech companies, payment and technology service providers, merchants, public institutions, research organizations, and other legal entities established in the European Union. Applications will close on November 9, 2026, and the ECB will announce the selection results in January 2027.
The potential launch of the digital euro is planned for 2029, while a testing program for the European CBDC is currently underway. In August 2026, the Eurosystem announced that the digital euro would offer enhanced privacy, preventing the Eurosystem from directly identifying the senders and recipients of payments made with the currency.
