European Parliament approves digital euro to reduce Visa, Mastercard dominance

The European Parliament’s Economic and Monetary Affairs Committee voted in favour of a digital euro, a central‑bank digital currency to be issued by the ECB. The scheme is designed to curb Europe’s reliance on U.S. card networks, which process around 70 % of European payments.

The digital euro will complement cash, allow offline transactions and provide free basic services such as account opening and wallet holding. Merchants will be required to accept it, with lower transaction fees than current card fees. Limits on individual holdings will be set to protect the financial system.

EU legislators highlighted the goals of “sovereignty, accessibility and privacy.” The vote clears the way for a plenary decision expected in July, followed by negotiations with the 27 member states and a target to finalise the framework by the end of the year, with possible issuance as early as 2029.