EU digital euro bill clears key vote

• The European Parliament's Economic and Monetary Affairs Committee approved its digital euro position by a 43–14 vote.
• The proposal includes offline payments, privacy safeguards, holding limits and no interest payments.
• The European Central Bank is targeting a potential digital euro launch in 2029, subject to legislative approval.

The European Parliament's Economic and Monetary Affairs Committee approved its position on the digital euro package by a 43–14 vote, moving the proposed central bank digital currency closer to implementation.

The vote advances legislative work on a digital euro framework as the European Central Bank continues preparations for a possible launch in 2029 after several years of policy development.

“The digital euro would complement cash, never replace it,” said Member of the European Parliament Fernando Navarrete Rojas.

Under the proposal, the digital euro would support both online and offline payments, include privacy protections such as zero-knowledge proofs, prohibit interest payments and impose holding limits based on European Commission decisions and ECB recommendations.

The legislation also outlines a distribution model involving banks, payment providers, e-money firms and regulated crypto companies, while the ECB would need to complete testing and technical preparations before launch; following the announcement there was no immediate market reaction tied to the proposal.

The ECB first began laying the groundwork for a digital euro in 2020, but progress has been delayed by the need to finalise legislation and operational requirements.

The committee vote comes as European institutions also explore private-sector alternatives, including euro-denominated stablecoin projects such as Qivalis, which expanded to 37 member institutions and is targeting a second-half 2026 launch.