UK Firms Can Join Digital Euro Pilot via EU Entity
The European Central Bank (ECB) has clarified that UK companies can participate in its digital euro pilot program, but not directly.
According to Gary Howes from Finextra Research, the eligibility criteria for the pilot focuses on legal establishment rather than beneficial ownership, offering a 'foot in the door' for UK businesses with an EU-incorporated entity.
The ECB is currently recruiting e-commerce and mobile-commerce merchants to test a beta digital euro. To participate, applicants must be legally established within the European Union, have operational reach across at least two of the 19 pilot locations, and not operate in excluded high-risk sectors.
UK companies with an EU-established entity that meets these criteria can apply until October 27, 2026. However, they will still need to contract with one of the 36 already-selected Payment Service Providers (PSPs) to process transactions.