European Parliament backs digital euro, launch planned for 2029

On 23 June 2026 the European Parliament’s Economic and Monetary Affairs Committee voted to approve the legislative framework for a digital euro, moving the project into the implementation stage. The European Central Bank will issue the central‑bank digital currency (CBDC) as legal tender across all euro‑area states, complementing cash rather than replacing it. Users are expected to access the euro digital through a smartphone‑based wallet that can also work offline, though loss of the device would mean loss of the stored funds.

The design includes a holding cap of roughly €3,000‑4,000 per wallet and offers no interest on balances, measures intended to prevent mass withdrawals from commercial banks. Payments for consumers will be fee‑free, while merchant fees will be capped by law. The initiative is promoted as a way to increase financial inclusion and reduce dependence on non‑European payment networks such as Visa and Mastercard.

Analysts, including Moody’s, see limited macro‑economic impact and modest risk to banks, but warn that public acceptance remains uncertain. Critics stress potential privacy losses, the creation of a powerful surveillance tool, and possible strain on banks’ deposit bases, while supporters stress sovereignty and modernization of the payments system.