EU Parliament moves forward with digital euro rollout

The European Parliament’s Committee on Economic and Monetary Affairs approved a political position supporting the introduction of a digital euro. Law‑makers stressed privacy, financial stability and consumers’ freedom of choice, calling for a “privacy‑by‑design” system built on technologies such as zero‑knowledge proofs. The digital euro would be a form of central‑bank money issued by the European Central Bank, usable both online and offline, with offline payments stored locally on a device.

The plan foresees a free digital wallet for private users, limits on how many digital euros individuals may hold, and bans interest on the token. Distribution would involve banks, e‑money providers, postal services and regulated crypto firms, while most retailers would be required to accept it, with exemptions for very small businesses. A pilot programme is slated to start in 2027 and a full launch could begin by 2029, after the Parliament negotiates a legal framework with the EU Council and the ECB finalises technical rules.

The initiative aims to give Europe its own payment infrastructure, reducing reliance on U.S. card networks such as Visa and Mastercard and countering private cryptocurrencies, while preserving cash alongside the digital currency.