EU lawmakers approve rules for digital euro, paving way for 2029 launch

On 23 June 2026 the European Parliament’s Economic and Monetary Affairs (ECON) committee voted overwhelmingly to approve a draft regulatory framework for a digital euro. The approval clears the path for trilog negotiations between the European Commission, the Parliament and the Council, with a final adoption expected by the end of 2026. The European Central Bank (ECB) plans to run a pilot in 2027 and make the digital euro available to citizens by 2029, provided the rules are adopted.

The digital euro is intended to complement cash and existing payment methods, not replace them. It will be issued as central‑bank digital cash, backed one‑to‑one with the euro, and will support both online and offline transactions, offering a “cash‑like” level of privacy. The project aims to reduce the euro‑area’s reliance on U.S. payment networks – about two‑thirds of card payments are processed by Visa and Mastercard – and to strengthen European financial sovereignty.

EU officials stressed that payment systems are “not neutral but instruments of power,” a comment from MEP Gilles Boyer, while ECB adviser Alessandro Giovannini said the digital euro “would not replace anything; cash would still be available.” Banking industry concerns about deposit outflows and the cost of implementation – estimated at €4‑6 billion over four years – were addressed in the draft, which also proposes individual holding limits to mitigate the risk of mass withdrawals.

The digital euro will be free for basic consumer use, with lower merchant fees than current private card schemes, and will be distributed through banks, post offices and regulated payment‑service providers. The initiative is part of a broader EU strategy to secure a sovereign, pan‑European payment infrastructure amid growing geopolitical tensions.