Bank of Finland and OP Pohjola launch cooperation in digital euro pilot

“The signing of the pilot agreement is an important step forward in the preparatory work for a digital euro. The pilot will help us gain practical experience of how a digital euro could function as part of the European payment ecosystem. At the same time, we will ensure that Finnish perspectives are also taken into account in the European-wide payments development work,” says Tuomas Välimäki, Member of the Board of the Bank of Finland.

The signed pilot agreement will enable OP Pohjola to participate in testing the technical solutions, operational processes and user experience of a digital euro together with the Bank of Finland and other euro area actors. The purpose of the pilot is to collect practical experience in a controlled environment of how a digital euro would work in different payment situations and how it could be integrated into existing payment systems. In the pilot, which will start in the second half of 2027, selected euro area payment service providers, merchants and central bank staff will test a digital euro in everyday payment situations for 12 months.

 “The digital euro pilot project will give OP Pohjola the opportunity to participate in building the future of European payments. We want to be involved in developing reliable and efficient payment methods and in promoting the availability of European payment solutions for Finnish consumers and merchants,” says Timo Ritakallio, President and Group Chief Executive Officer at OP Pohjola.

The signing of the pilot agreement shows that the preparation of a digital euro is progressing as planned. At the same time, it strengthens the opportunities for Finland and Finnish actors to influence how the European digital payment infrastructure will be built in the future.

Digital euro development progressing in parallel with ongoing legislative process in the European Union

On Thursday, 9 July, the European Parliament’s plenary session adopted its position on the digital euro and authorised the launch of negotiations with the Council, representing the Member States, on legislation establishing the digital euro. The aim of the package is to create the conditions for the introduction of the digital euro, while at the same time securing the status of euro cash as legal tender. Any decision on the issuance of a digital euro can only be made after the necessary EU legislation has been adopted. However, the pilot will allow the Eurosystem to ensure that technical solutions and operating models are ready for decision-making on the possible introduction of a digital euro.

The Bank of Finland has actively collaborated with Finnish payment service providers during the preparation phase of the pilot and has supported the involvement of market participants in the project. OP Pohjola’s participation in the pilot required several months of preparatory work, during which the bank assessed the pilot’s objectives, technical requirements and opportunities to participate in the development of a digital euro. The European Central Bank made the final selections of the payment service providers participating in the pilot.

Read more in the ECB's press release: ECB selects 36 payment service providers to join digital euro pilot