ECB opens digital euro innovation call for 2027 workstreams

The ECB digital euro innovation call has opened to private companies and organisations for two workstreams planned in 2027. The initiative is part of Eurosystem preparations for a possible digital euro and does not amount to a decision to issue one.

The European Central Bank said on 28 September that it is seeking merchants, payment service providers, technical providers, fintechs, consumer associations, public institutions, research institutes and point-of-sale vendors. Applications are due by 17:00 CET on 9 November, according to the ECB's call document.

Applicants may apply individually or jointly. The ECB particularly encourages joint proposals spanning roles in the payments ecosystem, such as a merchant and a payment provider. Candidates must identify their chosen workstream and focus area, explain their motivation and expertise, and set out proposed use cases.

Who can apply to the ECB digital euro innovation call?

Participation is open to a wide set of payments and public-sector stakeholders rather than only banks. The ECB will make selections through a structured assessment and expects to publish the list of participants in January 2027.

Participation will be voluntary and unpaid. Selected organisations will be expected to devote adequate resources for the duration of the work. The ECB said it will not provide remuneration or compensation for work undertaken through the platform.

What will the two workstreams cover?

The experimentation stream is intended to take ideas from the earlier innovation platform into testing and development. Its areas are electronic receipts within payment apps, payments involving several payers or recipients, conditional payments, and additional user-facing app functions.

Conditional payments execute automatically when agreed conditions have been fulfilled, according to the ECB. The central bank distinguishes these from programmable money, where money can be limited to a prescribed purpose or use. It said the European Commission's proposed regulation provides that a digital euro would not be programmable money.

Experimentation is expected to run from January through June 2027, with a possible extension by agreement. Selected participants will attend virtual workshops, receive specifications for a dedicated testing environment, and produce proof-of-concepts or prototypes alongside reports on their development and results. The initial technical scope is limited to interactions between simulated payment service providers and the backend, rather than complete end-to-end payment flows involving multiple actors.

The exploration stream will consider potential changes for later versions of the infrastructure. Topics include AI-enabled payment experiences, AI agents and their interactions, micropayments, and app functions. It will also examine public-service applications, including transport, utility payments, smart-city projects, financial inclusion, public-sector automation and resilience scenarios.

Exploration will take place through workshops at the ECB in Frankfurt during the first two quarters of 2027. The ECB may invite participants to present their work and may publish findings from either stream.

Does the call mean a digital euro will be issued?

No. The ECB said a final issuance decision will follow only after the relevant EU legislation has been adopted. It described the work as preparation that will remain aligned with the legislative process, and the innovation activities are separate from the ECB's planned pilot involving payment service providers.

This story draws on original reporting from Finextra Research.