The experiment will focus on the bank-to-bank 'wholesale' lending market rather than everyday public transactions but will be the first time a digital euro and Swiss franc have been fully tested.
The eurozone is adapting to a "strong trend" towards the digitalisation of payments," said Bank of France Deputy Governor Sylvie Goulard.
A partnership between Accenture and the Digital Dollar Foundation, the Digital Dollar Project was created last year to promote research into a US central bank digital currency (CBDC).
CBDCs are the digital equivalent of banknotes and coins, giving holders a direct digital claim on the central bank and allowing them to make instant electronic payments.
