ECB selects two network service provider groups for digital euro connectivity; first contract already in force

Opening — what the ECB announced

The European Central Bank (ECB) announced on 30 October 2026 that it selected two network service provider (NSP) groups to deliver connectivity services for the digital euro project (sourceId: 854fdbed27a571490e189033). The selection covers connectivity needs for the digital euro pilot and contingency readiness for potential future issuance.

Who was selected

The ECB named two temporary groupings as selected providers (sourceId: 854fdbed27a571490e189033):

• First-ranked provider group: Nexi Payments S.p.A. and Deutsche Telekom Business Solutions GmbH (temporary grouping).

• Second-ranked provider group: Telefónica de España, S.A.U., Telefónica Global Solutions, S.L.U. and Indra Soluciones Tecnologías de la Información, S.L.U. (temporary grouping).

Contracts and timing

The contract with the first-ranked provider group entered into force on 28 September 2026 and will initially provide connectivity for the ECB’s digital euro pilot (sourceId: 854fdbed27a571490e189033).

The contract with the second-ranked provider group is scheduled to start in May 2027 (sourceId: 854fdbed27a571490e189033).

Both NSPs are expected to be ready by 2029 to deliver the connectivity services that would be required if the ECB’s Governing Council decides to issue a digital euro in the future (sourceId: 854fdbed27a571490e189033).

What the pilot covers and who participates

The ECB’s updated FAQ describes the digital euro pilot as a limited practical exercise that uses a 'beta digital euro' issued by the Eurosystem to test technical, operational and user readiness with Eurosystem staff, participating payment service providers (PSPs) and merchants (sourceId: a5b19b7b21c6bf020e8330e9).

The pilot comprises three phases (sourceId: a5b19b7b21c6bf020e8330e9):

• Pilot preparation: first half of 2026.

• Pilot development: starting in Q3 2026.

• Pilot operational phase: starting in the second half of 2027, with a planned 12-month duration and up to a 6-month extension possible.

Individual end users participating in the pilot will be Eurosystem central bank staff; merchants and PSPs take part under contractual arrangements with national central banks and pilot PSPs respectively (sourceId: a5b19b7b21c6bf020e8330e9).

The 'beta digital euro' used in the pilot is a Eurosystem-issued liability created upon receipt of funds from pilot PSPs and differs from the digital euro foreseen in legislation; it is not a banknote or coin, nor an account held directly with the ECB (sourceId: a5b19b7b21c6bf020e8330e9).

How PSPs will connect and the contractual design

Payment service providers offering the digital euro will be able to connect to the digital euro components through either of the two selected NSPs (sourceId: 854fdbed27a571490e189033).

The service agreements are structured to give the ECB flexibility to adjust requested services in line with evolving needs during the pilot and any subsequent project phases (sourceId: 854fdbed27a571490e189033).

The ECB’s materials state that pilot PSPs may not charge participating end users fees for pilot payment services, and PSPs remain responsible for their contractual relationships and compliance with applicable laws during the pilot (sourceId: a5b19b7b21c6bf020e8330e9).

Confirmed developments and external reporting

The ECB press release and the updated FAQ provide the primary, confirmed details on the NSP selections, contract start dates and pilot structure (sourceId: 854fdbed27a571490e189033; sourceId: a5b19b7b21c6bf020e8330e9).

A NewsBTC report summarized the ECB announcements and confirmed the contract-in-force date of 28 September 2026 and the 30 October 2026 publication of the press outcome; the report noted that selecting infrastructure providers advances practical readiness but does not equate to a decision to issue a digital euro (sourceId: 6bb46552a7f6137e8572256c).

Significance — what this selection means

The selections mark a concrete step in building the connectivity infrastructure for the digital euro pilot and for contingency readiness ahead of any potential issuance decision. The active contract for the first-ranked provider enables immediate technical and operational support for the pilot phase that has already begun to unfold.

However, the selection of NSPs does not constitute a decision by the ECB Governing Council to issue a digital euro; the ECB and external coverage emphasize that infrastructure work is preparatory and contingent on future policy and legislative steps (sourceId: 854fdbed27a571490e189033; sourceId: 6bb46552a7f6137e8572256c).

Analysis — implications and remaining unknowns

Labelled analysis

Operational readiness: The contracts and stated 2029 readiness target indicate the Eurosystem is building redundancy and supplier diversity into connectivity arrangements by appointing two provider groups and phasing their start dates.

Pilot constraints: The pilot’s controlled scope — using a Eurosystem 'beta' liability and limiting end-user participants to central bank staff — means that the current exercise will generate technical and operational data but will not replicate broad retail public behaviour at scale.

What remains unknown: The public disclosures do not provide detailed contractual terms, specific technical architectures, data handling arrangements, pricing for non‑pilot participants, or contingency procedures in the event of service disruption. They also do not change the requirement for any formal Governing Council decision or applicable legislation before a digital euro could be issued (sourceId: 854fdbed27a571490e189033; sourceId: a5b19b7b21c6bf020e8330e9).

Questions readers are likely to have

Who were the two NSP groups selected by the ECB? See the named groupings above (sourceId: 854fdbed27a571490e189033).

When do their contracts start and what will they cover? The first contract entered into force on 28 September 2026 to support the pilot; the second contract is scheduled to start in May 2027; both are expected to be ready by 2029 for potential issuance needs (sourceId: 854fdbed27a571490e189033).

Does this selection mean the ECB has decided to issue a digital euro? No — the ECB and reporting outlets state the selection advances infrastructure readiness but does not equate to an issuance decision, which would remain subject to the Governing Council and any required legislation (sourceId: 6bb46552a7f6137e8572256c; sourceId: 854fdbed27a571490e189033).

Who can connect to the digital euro service platform and via which NSP? Payment service providers participating in the scheme will be able to connect through either of the two NSPs (sourceId: 854fdbed27a571490e189033).

What remains unknown about technical implementation and contractual terms? Public materials do not disclose detailed technical architectures, data governance arrangements or full contractual terms; those details remain with the ECB and contracted providers (sourceId: 854fdbed27a571490e189033).

Current status and next steps

As of the ECB press release published 30 October 2026, the first-ranked NSP contract is in force (from 28 September 2026) and the second contract is planned to start in May 2027 (sourceId: 854fdbed27a571490e189033).

The digital euro pilot is proceeding through its development phase that began in Q3 2026 and is scheduled to move into the operational phase in the second half of 2027 (sourceId: a5b19b7b21c6bf020e8330e9).

Both NSP groups are to be ready to support potential issuance-related connectivity by 2029, subject to future decisions by the ECB Governing Council (sourceId: 854fdbed27a571490e189033).

Sources

European Central Bank press release and related material (sourceId: 854fdbed27a571490e189033).

ECB digital euro pilot FAQ updated 28 October 2026 (sourceId: a5b19b7b21c6bf020e8330e9).

NewsBTC coverage summarising the ECB announcements (sourceId: 6bb46552a7f6137e8572256c).