The European Parliament's Economic and Monetary Affairs Committee approved the digital euro bill, paving the way for its potential launch by 2029.
The European Parliament's Economic and Monetary Affairs Committee has given the green light to the digital euro bill, with 43 members voting in favor, 14 against, and one abstaining.
Members of the @EP_Economics committee have adopted the digital euro legislation package, led by MEP @fnavarrete_. Key votes include:
📌 Digital euro regulation: 43/14/1
📌 Non-euro PSPs: 43/9/6
📌 Legal tender: 46/4/8
— ECON Committee Press (@EP_Economics) June 23, 2026
The digital euro aims to serve as an electronic currency issued by the European Central Bank (ECB), functioning both online through accounts and offline via local device storage. In offline mode, users risk losing their funds if they lose their device, similar to cash.
To ensure transaction security, the proposal suggests using zero-knowledge proofs that allow verification without revealing personal information. Various entities, including banks and regulated crypto service providers, will be authorized to distribute the digital euro.
While most businesses will be mandated to accept the digital euro, small enterprises may be exempt if they do not support other digital payment methods. Essential user services, such as account management and access to at least one payment method, must be provided at no cost.
To protect the banking system, a limit on how much citizens can store will be established, with the exact figure to be determined by the European Commission based on ECB guidance and reviewed every two years.
Future Developments
Before the digital euro can be launched, the ECB will need to create the necessary infrastructure, conduct pilot tests, and clarify liability rules. Special emphasis will be placed on addressing offline risks, including the possibility of double spending. A deployment period of at least 24 months is expected after receiving authorization.
If the legislation is approved in 2026, pilot testing and initial transactions could commence by mid-2027, with the first issuance of the digital euro potentially occurring in 2029.
The initiative aims to diminish the EU's dependence on external payment systems and uphold the significance of public money in the digital landscape. The ECB previously highlighted that approximately two-thirds of card transactions in the eurozone are managed by non-European firms.
Simultaneously, European banks are working on a private alternative, with ING reporting that participation in the euro-stablecoin project Qivalis has reached 37 members, including major banks like ABN AMRO and BNP Paribas, set to launch in late 2026, pending regulatory approval.
However, the ECB has expressed concerns over the risks posed by euro-stablecoins, which may hinder bank lending and complicate interest rate management.
In April, the ECB signed agreements with three European organizations to establish payment standards for the digital euro.
