EU Parliament clears rules for digital euro to launch in 2029

The European Parliament voted to open formal trilogue negotiations with the Council and the European Commission on the digital euro and a cash‑protection regulation. The Parliament’s decision sets the target launch date for the central‑bank digital currency at 1 January 2029.

The approved framework says the digital euro will not be programmable and will impose a personal holding limit that can be revised at least every two years. Businesses will be allowed to keep received digital euros for only 24 hours before they must be transferred to a conventional bank account. The rules also include stronger data‑privacy safeguards, with transaction data to be pseudonymised and privacy‑enhancing technologies such as zero‑knowledge proofs.

These measures aim to give the eurozone greater payment‑system sovereignty, offering a free, secure European alternative to dominant U.S. payment services while protecting cash usage.