ECB launches innovation hub to advance digital euro and CBDC use cases

The initiative is part of the ECB’s broader efforts to explore the potential of a European central bank digital currency (CBDC) and support the creation of an innovative and inclusive digital payments ecosystem across the EU. Following a call for interest published in October 2024, the ECB received over 100 applications from various market actors. Approximately 70 participants were selected to join one or both dedicated workstreams: pioneers and visionaries. These participants include banks, fintechs, merchants, startups, and other payment service providers. The initiative is designed to simulate the digital euro ecosystem, with the ECB offering technical infrastructure and support to enable European intermediaries to explore and test digital euro functionalities. The platform aims to assess how the digital euro could integrate into existing payment systems and generate added value for end-users. Pioneers focus on programmable payments The “pioneers” workstream is primarily focused on investigating conditional or programmable payments – transactions that execute automatically when predefined criteria are fulfilled. These may include use cases such as releasing payment upon delivery confirmation for an online purchase. Participants in the pioneers group are integrating simulated digital euro interfaces with their systems, with technical guidance from the ECB. This includes access to APIs and relevant documentation. Each participant is independently developing use cases and will deliver a report summarising their findings. The ECB will analyse these contributions to guide future technical and policy decisions on the digital euro. The “visionaries” workstream is conducting research into how the digital euro could address broader societal challenges, including digital financial inclusion. Concepts under consideration include enabling access to digital euro wallets through widespread physical channels such as post offices, which could extend services to unbanked populations or individuals lacking digital access. The platform represents a key step in the ECB’s phased approach to launching a potential CBDC. By fostering collaboration with stakeholders across the payments and fintech sectors, the ECB aims to unlock the digital euro’s potential to drive innovation, improve the payment experience for consumers, and support Europe’s strategic autonomy in the digital finance space.