<h2 id="crypto-news">Crypto News</h2>The European Central Bank has outlined a timeline for its DigitalEuro pilot, with Executive Board Member Piero Cipollone <a href="https://www.ecb.europa.eu/press/key/date/2026/html/ecb.sp260218~e8cad0ec0f.en.pdf" rel="noopener noreferrer nofollow">stating</a> that the selection of payment service providers (PSPs) will begin in the first quarter of 2026, ahead of a 12-month test phase scheduled for the second half of 2027.Cipollone made the announcement at an executive committee meeting of the Italian Banking Association on Wednesday. He said the pilot will involve a limited number of EU-licensed payment service providers, merchants, and Eurosystem staff, with the process structured to give participating providers an early operational advantage before any broader rollout.For PSPs that join the pilot, the ECB said involvement would offer hands-on experience with onboarding procedures, settlement, and liquidity management. Cipollone also said participating providers would gain clearer visibility into future infrastructure, compliance, and staffing costs, helping firms plan capital allocation more accurately.Beyond logistics, the pilot is framed as a mechanism to keep European banks central to the Eurozone payments system. <a href="https://www.reuters.com/business/finance/ecbs-cipollone-says-digital-euro-will-protect-european-banks-card-schemes-2026-02-18/" rel="noopener noreferrer nofollow">Cipollone</a> stated that the ECB designed the digital euro to protect domestic card and payment schemes such as Italy's Bancomat network and Spain's Bizum platform, which face competition from international networks including Visa and Mastercard."Banks could lose their role in payments not just because of stablecoins but also due to other private solutions," Cipollone said, pointing to Europe's dependence on non-European card infrastructure. He added that fee caps for the digital euro network would be set below what international payment networks typically charge merchants, but above the rates charged by domestic schemes.The ECB officially moved the digital euro into its next development phase in October 2025. At that time, the central bank projected that a pilot could begin in 2027, contingent on enabling legislation passing within the European Union during 2026. The broader target for a potential full launch remains 2029.Cipollone confirmed that PSP participants will also have input into the design process itself, allowing them to shape how the digital euro infrastructure takes form. The CentralBankDigitalCurrency initiative sits alongside ongoing global debates about the role of public digital money versus private stablecoins in the future of payments. Cointelegraph contacted the ECB for comment on the PSP selection process but had not received aresponse at the time of publication.

ECB To Select Digital Euro Providers in Q1 2026 Ahead of 2027 Pilot

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