ECB Expands Digital Euro Program to Include AI-Enabled Payments

The European Central Bank (ECB) is expanding its digital euro innovation program to include experiments with AI-enabled payments and machine-to-machine transactions. The initiative, which opened applications on Monday for fintech companies and payment firms, will examine how automated software interacts with payment systems.

The two-part program has a first phase running from January through June 2027, supporting prototypes for electronic receipts, multiparty transactions, conditional payments, and new user-facing features. Workshops in the first half of 2027 will focus on AI-enabled payments, micropayments, machine-to-machine interactions, and potential public-service applications.

Some participants will present their projects at the ECB's headquarters in Frankfurt, with results potentially shaping future digital euro features and use cases. This program is part of the ECB's preparation for a possible central bank digital currency designed to function as digital cash alongside banknotes and coins.