European Parliament backs euro digital with interest‑free holding limit

The European Parliament’s Economic and Monetary Affairs Committee approved the legislative package that will create a digital euro, setting a per‑person holding limit of roughly €3,000‑€4,000 and prohibiting any interest on those balances. The measure is designed to keep the digital euro a payment instrument rather than a savings alternative, protecting bank deposits and financial stability.

The approval clears the way for formal negotiations between the European Parliament, the Council and the European Commission on the technical and regulatory details. The EU aims to have the digital euro operational by 2029, with the next step a full‑parliament vote expected before the summer recess. Officials highlighted the need to ensure that users are not locked out of their funds if a smartphone is lost or damaged, a concern that will be addressed in forthcoming technical discussions.