European Parliament Committee Approves Digital Euro
In a significant milestone for the digital euro project, the European Parliament's Committee on Economic and Monetary Affairs (ECON) has voted to approve the digital euro legislation. This decision clears a major hurdle in the legislative process and brings the EU one step closer to establishing the legal framework for a central bank digital currency.
What Was Approved?
The ECON committee's approval covers the key aspects of the digital euro regulation, including:
- The legal framework for issuing and managing the digital euro
- Rules for distribution through commercial banks and public intermediaries
- Privacy and data protection standards
- Holding limits to protect financial stability
- Merchant acceptance requirements
- Free basic usage for citizens
What Happens Next?
The approval sets up trilogue negotiations — three-way talks between the European Parliament, the Council of the EU, and the European Commission. The Council already approved its negotiating position in December 2025, meaning all three institutions are now ready to finalise the legislation.
The target is to reach a final agreement before the end of 2026. Ireland, holding the EU presidency in the second half of the year, is expected to play a key role in driving the negotiations forward.
Why This Matters
This approval signals that the digital euro has broad political support in the European Parliament. It addresses key concerns that have been raised:
- Privacy: The legislation includes explicit privacy guarantees, with offline payments offering cash-level anonymity.
- Financial stability: Holding limits and zero remuneration protect banks from deposit flight.
- Free access: Basic digital euro services must be offered free of charge.
- Universal acceptance: Merchants across the eurozone would be required to accept it.
Industry Reaction
The approval has been welcomed by the banking sector, which sees the digital euro as an opportunity to provide new services while maintaining their role in the payment ecosystem. However, some concerns remain about implementation costs and the timeline for merchant adoption.
ECB Executive Board member Piero Cipollone called the vote "a crucial step towards a digital euro that will strengthen Europe's payment autonomy and provide citizens with a secure, private digital payment option."
Looking Ahead
If trilogue negotiations conclude successfully in 2026, the ECB will proceed with:
- Finalising the technical infrastructure
- Launching the pilot programme in H2 2027
- Preparing for a potential public launch in 2029
For more details on the full timeline, see our Timeline & Roadmap guide.