European Union moves forward with digital euro legislation

The European Parliament’s Committee on Economic and Monetary Affairs has approved a legislative proposal that would govern the future digital euro, a central‑bank‑issued electronic version of the euro intended to complement cash. The proposal, part of the EU’s Single Currency Package, aims to modernise the payment system, strengthen financial sovereignty and reduce reliance on private networks such as Visa and Mastercard.

The legislation also seeks to curb “No‑Cash” signage in stores. An EU draft states that “Ein Händler darf Bargeld nicht einseitig vorab ausschließen,” banning merchants from unilaterally refusing cash and setting specific exceptions, such as large‑note limits and coin‑quantity caps. The digital euro would be available to citizens across the 27‑member euro area, with a pilot planned for late‑2027 and possible issuance as early as 2029, while cash will remain legal tender.

The European Central Bank emphasises that the digital euro will be a “forma digital de efectivo emitida por el banco central,” offering a free, publicly controlled payment option that does not replace physical cash.