EditMEPs back digital euro with strong safeguards for privacy, cash, and financial stability
The digital euro is explicitly designed as a European public alternative to reduce reliance on private, mostly US-based card networks like Visa and Mastercard
The European Parliament’s Economic and Monetary Affairs Committee (ECON) took a major step forward on Tuesday towards the possible launch of a digital euro, adopting its negotiating position on the EU’s single currency package. The digital euro proposal passed by 43 votes to 14, with 1 abstention.
The package consists of three legislative files aimed at modernising Europe’s currency in response to rapid digitalisation while protecting citizens’ choices and the stability of the financial system.
What is the digital euro?
The digital euro would be a new electronic form of central bank money issued directly by the European Central Bank (ECB) – essentially a digital version of euro banknotes and coins. It is designed to complement cash, not replace it, offering a secure, European-controlled alternative to private payment apps and foreign-dominated card networks.
Users could make payments both online (through accounts) and offline (via a stored-value device, similar to handing over cash). Losing an offline device would mean losing the money stored on it, just as losing physical cash cannot be refunded.
The digital euro is explicitly designed as a European public alternative to reduce reliance on private, mostly US-based card networks like Visa and Mastercard. It would provide a secure, low-cost, pan-European payment method directly backed by the ECB, operating alongside (and competing with) existing card systems rather than fully replacing them.
Key protections demanded by MEPs
Parliamentarians insisted on several important safeguards:
- Strong privacy: The system would follow “privacy by design” and “privacy by default.” Advanced technologies like zero-knowledge proofs would verify transactions without revealing personal data. The ECB would not have access to users’ personal information or spending habits.
- Free basic services: Opening an account, holding money, and making basic payments would be free for individuals. Merchants would face capped fees, and offline payments would be entirely free.
- Holding limits: To prevent bank runs or disruption to commercial banks, individuals would face a cap on how many digital euros they can hold. The European Commission would set this limit based on ECB advice, with regular reviews. Parliament wants a strong say in this decision. Businesses could only hold digital euros temporarily (up to 24 hours) to receive payments.
- No interest: The digital euro would neither earn nor cost interest, keeping it as a means of payment rather than an investment tool.
- Wide availability: Banks, post offices, and other regulated providers across the EU could distribute it. Most businesses would have to accept it, with limited exceptions for very small enterprises.
Before any launch, the ECB would need to run pilot tests, finalise technical rules, and allow at least 24 months for preparation. Public awareness campaigns would help citizens and businesses get ready.
Protecting cash alongside the digital euro
The package also strengthens the legal tender status of physical euro notes and coins. Member states must ensure cash remains widely available and accepted, especially in rural areas and for vulnerable groups such as the elderly or unbanked. Shops would not be allowed to ban cash through “no cash” policies.
Rapporteur Fernando Navarrete Rojas (EPP, Spain) said: “The digital euro will complement cash, never replace it. No one should be forced away from cash, and no one should be left without a secure, resilient and genuinely European digital payment option.”
The EPP Group, the largest in Parliament, welcomed the outcome as striking the right balance between innovation and protection. They emphasised reducing Europe’s heavy reliance on non-EU payment providers and ensuring both cash and digital options remain viable.
The ECR Group stressed vigilance on cash protection. Shadow rapporteur Stephen Bartulica said:
“Cash must remain a real choice. Any digital euro must complement cash, not replace it… For many people, including older citizens, rural communities and small businesses, cash is still essential in daily life. It is tangible freedom: private, resilient and independent of technical infrastructure.”
He warned against any gradual phasing out of cash through regulation or inconvenience.
Next steps
The committee’s position will be presented to the full European Parliament plenary in July for formal approval. MEPs will then enter negotiations (“trilogues”) with EU governments to reach a final agreement. Only after legislation is in place would the ECB decide whether and when to actually issue the digital euro. A possible launch is not expected before 2029.
The move reflects growing concern in Europe about strategic autonomy in payments. With Visa and Mastercard handling the vast majority of card transactions, lawmakers see the digital euro as a way to enhance resilience, privacy, and sovereignty in an increasingly digital economy – while ensuring no citizen is left behind.
Caption: AI-generated illustrative image
Updated: June 23, 2026 - 15:58
