The European Parliament's Economic and Monetary Affairs Committee has endorsed the digital euro bill. The proposal received approval from 43 members, with 14 voting against and one abstaining.
MEPs from @EP_Economics adopted the single currency package #DigitalEuro, led by MEP @fnavarrete_
— ECON Committee Press (@EP_Economics) June 23, 2026
📌Digital euro regulation 43/14/1
📌Non-euro PSPs 43/9/6
📌Legal tender 46/4/8https://t.co/ohE38Mq9bP
The digital euro is intended to be an electronic form of currency issued by the ECB. It will function both online (via an account) and offline (through local storage on a device). The offline mode is proposed to be treated like cash: if a user loses their device, they will lose access to the funds stored on it without the possibility of recovery.
To verify transactions, technologies such as zero-knowledge proofs are suggested to confirm operations without disclosing personal data. Distribution of the digital euro will be open to banks, payment providers, postal services, electronic money issuers, and regulated crypto asset service providers.
Most businesses will be required to accept the asset, with exceptions for small and micro-enterprises that do not support other digital payments. Basic services for users (such as account opening, fund storage and management, and access to at least one payment instrument) must be provided free of charge.
To mitigate risks to the banking system, a storage limit will be set for citizens. The specific amount has not been specified by the committee; the ceiling will be determined by the European Commission based on ECB recommendations and reviewed at least every two years.
Next Steps
Before launching, the ECB must build the necessary infrastructure, conduct real pilot tests, and clarify liability rules. Special attention will be given to offline risks, including double spending. Following authorization, a deployment period of at least 24 months is anticipated.
According to ECB estimates, if legislation is passed in 2026, pilot testing and initial transactions could begin in mid-2027, with a potential first issuance of the digital euro in 2029.
The digital euro is expected to reduce the EU's reliance on external payment infrastructures and maintain the role of public money in the digital economy. In October 2025, the ECB noted that nearly two-thirds of card transactions in the eurozone are processed by non-European companies.
Meanwhile, European banks are developing a private alternative. In May, ING reported that participation in the regulated euro-stablecoin project Qivalis has grown to 37 members, including ABN AMRO, Rabobank, Nordea, Intesa Sanpaolo, BNP Paribas, ING, and UniCredit. The asset is scheduled for launch in the second half of 2026, pending regulatory approvals.
However, the ECB has warned about the risks associated with issuing euro-stablecoins, as they could reduce bank lending and complicate interest rate control.
It is worth noting that in April, the regulator signed agreements with three European organizations to standardize payments for the digital euro.