ECB to conduct new digital EUR experiments in 2026

The European Central Bank has announced the plan to conduct new experiments in 2026 about what could be achieved through the launch of a digital EUR.

Following this announcement, a digital EUR could foster development in the European payments system and boost financial inclusion, according to a report published today on the outcome of the first iteration of the digital euro innovation platform. This represents an initiative launched by the European Central Bank (ECB) in October 2024 for collaboration, partnership, and experimentation with digital EUR project stakeholders.

In addition, this iteration of the development platform brought together almost 70 market participants, including merchants, fintech companies, start-ups, academia, as well as banks and other payment service providers, to explore possible applications of the digital EUR.

More information on the ECB’s strategy to conduct new digital EUR experiments

According to the official press release, participants joined one or both of two workstreams: `visionaries` and `pioneers`, with the visionaries being set to focus on gathering development ideas and exploring the long-term potential of the digital euro, while the pioneers will concentrate on technical experimentation. At the same time, both workstreams highlighted the importance of harmonised standards, a shared infrastructure, as well as ongoing collaboration with market participants for ensuring the scalability, reliability, and usability of the product across the EUR area. The report presents the findings of the two workstreams, as it describes the development and applications that the digital EUR platform could enable. 

Conditional payments were also identified as a possible key driver of innovation and an example of how the digital EUR could improve the day-to-day lives of European citizens. Furthermore, as set out in the current draft legislation, a digital EUR would offer core technical capabilities, such as the reservation of funds functionality, which would give money the possibility to be set aside while a payment is in progress. Unique features are also expected to allow payment service providers to develop the additional technical layer needed to enable conditional payments. Insurance reimbursements could be automated and, in the case of delayed services, refunds could be streamlined, while for shared mobility services and public transport, conditional payments are set to enable tap-and-go transactions and automatically calculate the best available fare for both customers and institutions. These concepts were successfully tested in a simulated digital EUR environment.

Conditional payments were also tested in the context of B2B payments, and it was found that a digital EUR would contribute to reducing fragmentation and costs for B2B payments, while bringing increased standardisation and liquidity. At the same time, integrated electronic receipts (e-receipts) within the digital EUR ecosystem could provide consumers with structured and secure access to their purchase records, simplifying tasks such as returns, warranty claims, expense reporting, and personal budgeting. For merchants, e-receipts are set to significantly reduce operational costs and improve efficiency, as the process of eliminating several printed receipts each year would not only simplify people’s lives but also bring clear environmental benefits, such as reducing chemical waste, resource leverage, and emissions. In addition, e-receipts are set to be strongly encrypted, meaning they could only be seen by the buyer and the seller.

The digital EUR could also improve the overall inclusion and accessibility in the region, for example, with tailored wallets for children to optimise the manner in which they learn how to spend and save responsibly from a young age. At the same time, students could gain easier access to dedicated benefits and discounts with free digital EUR wallets. Furthermore, in order to ensure accessibility, the digital EUR interface could incorporate user-friendly features such as voice-controlled transactions, large-font displays, and guided onboarding processes.

Following these partnerships and amid further demand from market participants, the ECB has decided to launch a second round of experimentation in order to maximise the digital EUR’s potential for development, with more details set to be announced during the first half of 2026.

Furthermore, the digital EUR ’s extensive reach is set to ensure that these optimised ideas are instantly accessible to all consumers and merchants in the EUR area, addressing the limitations typically associated with the closed ecosystems of other payment methods. In addition, the ideas explored as part of the development platform initiative are still at the experimental stage, as the Eurosystem will continue engaging with stakeholders in order to ensure that the digital EUR’s design meets the needs of future users and the market.