The European Parliament’s Committee on Economic and Monetary Affairs has endorsed the digital euro bill. The proposal received approval from 43 members, while 14 opposed it and one abstained.
MEPs from @EP_Economics adopted single currency package #DigitalEuro, led MEP @fnavarrete_
📌Digital euro regulation 43/14/1
📌Non euro PSPs 43/9/6
📌Legal tender 46/4/8https://t.co/ohE38Mq9bP— ECON Committee Press (@EP_Economics) June 23, 2026
The digital euro is intended to be an electronic form of money issued by the ECB. It will function both online (via account) and offline (via local storage on a device). The latter mode is proposed to be equivalent to cash: if a user loses the device, they will lose the stored funds without recovery options.
To verify transactions, technologies like zero-knowledge proofs are suggested to confirm operations without revealing personal data. Banks, payment providers, post offices, electronic money issuers, and regulated crypto asset service providers will be able to distribute the digital euro.
Most companies will be required to accept the asset. Exceptions are provided for small and micro-enterprises that do not support other digital payments. Basic services for users (account opening, storage and management of funds, access to at least one payment instrument) must be free of charge.
To mitigate risks to the banking system, a storage limit for citizens will be set. The specific amount was not specified by the committee; the ceiling should be determined by the European Commission based on ECB recommendations and reviewed at least every two years.
Next Steps
Before launch, the ECB must build the infrastructure, conduct real pilot tests, and clarify liability rules. Special attention is given to offline risks, including double spending. After authorization, a deployment period of at least 24 months is planned.
According to ECB estimates, if legislation is adopted in 2026, the pilot and initial transactions could begin by mid-2027, with the potential first issuance of the digital euro possible in 2029.
The digital euro is expected to reduce the EU’s reliance on external payment infrastructures and maintain the role of public money in the digital economy. In October 2025, the ECB noted that nearly two-thirds of card transactions in the eurozone are processed by non-European companies.
Meanwhile, European banks are developing a private alternative. In May, ING announced that the number of participants in the regulated euro stablecoin project Qivalis had grown to 37, including ABN AMRO, Rabobank, Nordea, Intesa Sanpaolo, BNP Paribas, ING, and UniCredit. The asset’s launch is planned for the second half of 2026, subject to obtaining approvals.
However, the ECB warned of the risks associated with issuing euro stablecoins, which could reduce bank lending and complicate interest rate control.
Earlier, in April, the regulator signed agreements with three European organizations on payment standards for the digital euro.
