EU Parliament backs digital euro legislation

On 23 June 2026 the European Parliament’s Economic and Monetary Affairs Committee voted to endorse the draft regulation that would enable the European Central Bank (ECB) to issue a digital euro. The proposal sets out a pan‑European electronic wallet that can be used for online and offline payments, complementing cash rather than replacing it. The ECB aims to run a 12‑month pilot in the second half of 2027 and to make the digital euro generally available by 2029, provided the legislation is finalized by year‑end. The new instrument is promoted as a way for the euro‑area to reduce reliance on U.S. payment networks such as Visa, Mastercard, Apple Pay and Google Pay and to strengthen European financial sovereignty. Users would open a dedicated account at a bank or public intermediary, load it with euros, and could pay with a smartphone app, card or other device; basic services would be free, while merchants would bear modest processing fees. The regulation includes privacy safeguards (anonymous transactions, offline mode) and a holding limit per person to protect financial stability. Banks have voiced concerns over implementation costs, estimating between €4 billion and €5.8 billion, and fear potential deposit outflows, but the ECB argues the design prevents mass withdrawals. If approved, the digital euro would become a legally recognised means of payment across the EU, offering an alternative to non‑European providers.