The European Central Bank has strengthened its privacy commitments for a potential digital euro as Revolut has begun rolling out its first euro-backed stablecoin, EURR, to selected customers across three European markets.
ECB Promises Maximum Privacy
ECB Executive Board member Piero Cipollone said the digital euro would offer the maximum level of privacy that existing technology can support. For offline payments, transaction details would only be available to the payer and recipient. The Eurosystem would not receive information allowing it to identify the people involved. Online transactions would operate differently because banks would still need access to customer information for anti-money laundering compliance, but the Eurosystem itself would not be able to identify users.
Revolut EURR Enters Three Markets
Revolut has started phased testing of EURR with eligible customers in Denmark, Poland and Portugal. EURR is Revolut's first stablecoin and is designed to maintain a value of €1. The token is initially launching on Ethereum, with Revolut planning wider availability across European Economic Area markets later in 2026. Despite carrying Revolut branding, the token is issued by Bridge Building S.A., part of Stripe-owned stablecoin infrastructure company Bridge.
Euro Stablecoins Expand Under MiCA
The supply and number of regulated euro-backed stablecoins have increased under the EU's Markets in Crypto-Assets framework. A Decta study found that the market capitalization of eight MiCA-compliant euro stablecoins increased 128% in the year leading up to the end of the EU's crypto transition period, rising from $295.6 million to $673.9 million. Circle's EURC has become one of the largest regulated euro tokens, with circulation passing €400 million in August.
Digital Euro vs Private Stablecoins
The digital euro would sit in a different category from EURR, EURC and other privately issued tokens because it would represent a direct liability of the central bank. Private stablecoins depend on their issuers' reserves and compliance frameworks. The ECB has been working toward technical readiness for possible issuance around 2029, subject to the required European Union legislation. A 12-month pilot is scheduled to begin in the second half of 2027, covering person-to-person and point-of-sale payments.
