EU moves ahead with digital euro after parliamentary vote

The European Parliament’s Economic and Monetary Affairs Committee approved a negotiating position on the digital euro by a 43‑14 vote, with one abstention. The mandate authorises the Parliament to enter trilogue talks with the European Council to shape the legislation that would introduce a new form of central‑bank money, usable both online and offline, and free of charge for basic services.

The proposed law would cap the amount any individual can hold and set a 24‑month rollout schedule. The digital euro would have legal‑tender status for most businesses, while small self‑employed firms could be exempt. Offline payments would rely on local storage devices, functioning like cash without a network connection.

Privacy safeguards are built into the draft, employing cryptographic techniques such as zero‑knowledge proofs to keep personal data to the minimum necessary and preventing the European Central Bank from accessing identities. The EU frames the initiative as a way to reduce dependence on US‑based payment providers such as Visa, Mastercard and PayPal, offering an additional official payment method alongside cash.